The Family Bank has unveiled plans to extend its services to other African nations as it eyes higher income from lending.
While giving a public lecture at the University of Nairobi on Friday, Family Bank founding director Titus Muya also unveiled plans to list the bank’s shares at the Nairobi Stock Exchange (NSE) to give investors an opportunity to buy shares in the bank.
“We are on a journey to becoming a Tier one bank. We are planning to have a footbridge in the region, and we are also planning to list our shares at the NSE in the near future to give an opportunity to our investors to buy shares in the bank and become part of the Family Bank story,’’ said Muya.
With an asset base of Sh. 130 Million and over 1.7 million customers, Family Bank has, over the years, been lauded for good customer service.
The bank has heavily invested in digitization and was awarded and recognized as the best tier-two bank in customer responsiveness and digital banking experience in a recent survey conducted by the Kenya Bankers Association. The 2022 customer satisfaction survey obtained over 33,000 responses countrywide.
“About 46.7 per cent of respondents preferred fully automated or self-service banking services, signifying that the pandemic has accelerated the adoption of digitization,” said Family Bank Chief Executive Officer Rebecca Mbithi.
“As a Bank, we have heavily invested in digitization and automation of services, and we are glad to see it when our customers appreciate the efficiency and the experience that automation brings to the banking experience.”
Digitization and income diversification saw the bank’s non-funded income grow by 21 per cent to Sh 1.9 billion in the first six months of 2022, up from Sh. 1.5 billion in a corresponding period in 2021.
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During the period, Family bank posted a Sh. 2.3 billion Profit before Tax. This was a 37.4 per cent jump compared to Sh 1.7 billion shillings realized in the previous year. The profit growth was driven by a 24 per cent growth in net interest income to Sh. 6.1 billion from Sh. 4.9 billion. Further, the bank’s loan book expanded 19.3 per cent to Sh. 75.6 billion, up from Sh. 63.4 billion in June 2021.
“We continue to focus on supporting our customers across diverse sectors of our economy through partnerships, digitization, and other innovative solutions that provide a compelling value proposition for them. We have seen a growth in loans and advances as we continue to on-lend to our customers to support business and personal growth,” said Mbithi.
During the review period, total deposits increased by 19 per cent to close at Sh. 90.7 billion from Sh. 76 billion, while total assets increased by 24 per cent from Sh. 100 billion to Sh. 124 billion.