Family Bank surpass Ksh1.2 Billion PBT mark in sterling Q3 performance

 Bank grows earnings by 138% to Ksh1.2 Billion in Q3 2013 as bank CEO Peter Munyiri says plans to achieve Tier1 status on course.....

 Family Bank CEO Mr Peter Munyiri (R) flanked by Kereri Muya,
Family Bank COO (l)  briefs  media on the bank's performance

Family Bank has posted impressive performance in third quarter (Q3) results, growing profit before tax by 138% on the back of increased lending activities and growing customer numbers.

The Group returned Ksh1.226 Billion in pre-tax profits, hitting early its own target for the year and for the first time surpassed the magical Ksh1 Billion earnings mark. 

The growth rate is the fastest posted by any Kenyan bank this quarter.  Compared to the Ksh507 Million earned over a similar period last year, Ksh311M in quarter one 2013 and the Ksh703.3Million earned in the quarter ended June 2013, this is the best performance reported by the bank in the last two years and by extension also in its entire 29 year history.  

The sterling performance drives up total bank assets by 24% to Ksh39Billion from Ksh31 Billion as at December 2012, with the loan book growing a generous 42% from 19.8Billion to Ksh25.5Billion. This was contributed to largely by an expansion in bank’s deposits safe from Ksh24.6Billion in December 2012 to Ksh31.1B as a faithful 1.3 billion customer base stayed in the family. 

Family Bank CEO and Finace Director compare
notes before presenting the bank's performance

Started in 1985, Family Bank has grown drastically in depositors’ numbers and size, from a single branch to a footprint of over 70 branches countrywide. Its from the network branches strewn across the country, the bank has earned Ksh3.75Billion from lending activities.

Non-interest revenue increased to Ksh1.26Billion against to Ksh945.8 Million in a similar period last year, boosted by increased activity on the Pesa Pap! Mobile banking platform and introduction of new services with the going live of PesaPoint on its ATM network countrywide. Family Bank can now serve customers with cards issued by over 32 banks that are members of the PesaPoint network. In addition, over 17 million Safaricom customers can now get private self service M-PESA transactions at its ATMs.  

Speaking while announcing the results, Family Bank CEO attributed the growth to a combination of factors including sound strategy, fair economic and political climate and internal investment by the bank in its human resources.

“The good performance of the bank indicates that our goal to become a tier 1 bank is well on course. To celebrate this achievement, we are increasing our investment in people and technology to ensure the bank continues to reap more rewards going forward,” said CEO, Peter Munyiri.

He added: “Family bank’s impressive performance comes at a time our internal programs are focusing investment in people. Indeed, this October, Family Bank received the best company to work for award in the banking category, in a Human Resource survey carried out by global audit firm, Deloitte.” 

Mr Munyiri said the bank leadership was confident it had the right resources to propel it towards regional expansion and to embark on a wider Pan-African agenda. “It’s a good time to be with Family Bank. We have completed major investments in internal programs and ensured that the right resources are in place for our larger expansion plans,” he said.

As a provider for affordable financial services to various categories of customers including large enterprise, small and medium sized businesses to the low and medium income earners the bank continues to focus on regional footprint in the near future. 

Family Bank’s long term goal to become a pan-African bank is guided by a transformation strategy which has achieved substantial results to date, seeing the bank grow its profits before tax, deposits and loan book quarter after quarter under the leadership of Mr. Munyiri. 

Some of the innovative banking products and services developed by Family Bank include paperless banking and a mobile banking service popularly known as Pesa Pap! Which cater for more customer needs enabling them to transact via their mobile phones, pay their loans and get bank balances and financial tips on request. Family Bank is also in moving its customers to a more secure EMV Chip and PIN cards platform.