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| Family Bank shareholders |
Family Bank shareholders have approved establishment of a non-operating holding company that will hold shares in Family Bank Kenya and other non-banking subsidiaries ahead of expansion plans. Family Bank CEO Nancy Njau, Chief Financial Officer Stephen Ngugi & PwC Senior Manager David Mugo (c) during the 17th AGM. Family Bank's expansion plans in Africa Family Bank CEO Nancy Njau said the move would strategicaly help the lender in its growth and was in line with its expansion plants. The bank is looking to expand its reach into West and Central Africa in order to increase its financial assets and cements its footing in the lending sector. “Regional expansion remains a focus for the Bank in supporting our business growth and expansion strategy. We are exploring the possibility of expanding our footprint to countries within the East, West and Central African region. This non-operating holding company will allow for capital efficiency, risk management and establishment of separate governance structures for both banking and our non- banking subsidiaries,” said Njau.. The approval comes following the Annual General Meeting where the shareholders also approved a KSh 723 million dividend pay-out for the financial year ended December 2023. The payout amount was down from KSh 795 million it paid at the end of 2022. At the end of the 2023, the lendered registered a KSh 2.5 billion profit after tax, growth that was primariry funded by increased deposits. Family Bank achieves impressive growth in Q1 In May, Family Bank Group has reported a KSh 1.3 billion profit before tax for the first quarter ending March 31, 2024, marking a 24.3% increase compared to the same period last year. Family Bank CEO Nancy Njau said profit growth was primarily driven by a rise in interest income and non-funded income, alongside a strategic expansion of the balance sheet. The bank's total assets grew by 10.7%, reaching KSh 145.9 billion during the period under review. This growth was supported by a 19% increase in customer deposits, which rose from KSh 92.7 billion to KSh 110.43 billion. Family Bank appoints new board chairman Durimg the same month, Family Bank named a new board chairman to succeed Wilfred Kiboro. Kiboro steered Family Bank through the COVID-19 pandemic and the 2016 banking crisis. He has also seen the bank expand from 68 branches to 95. The institution's profitability increased from KSh 526 million in 2012 to KSh 2.5 billion in 2023.
by Muyela Roberto
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