CORPORATE SCENE

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Bank doubles profits

Family Bank has more than doubled its pre-tax profit for 2013 –Sh1.78billion compared to Sh868million realized the previous year.

The 108 per cent jump in profits is the best results since its conversion to a bank six years ago.

 

The bank’s performance was buoyed by significant jump in net interest income to Sh4.45billion from Ksh 3.29billion in 2012– a 35 per cent increase. The profits also rode on a 33 per cent revenue growth to Sh6.3billion in 2013 from Sh4.73billion in 2012.

The outcome enabled the bank’s directors to recommend a dividend payment of Sh0.40 per share totaling to Sh222.8 million from the Sh111.3-million payout in 2012.

The Chairman Wilfred Kiboro attributed the impressive results to the decrease in interest expense as a result of capital injection by the shareholders and intensified debt collection efforts supported by tight and improved credit administration.

“The rapid growth is attributed to the shareholders funding through the rights issue at the beginning of last year which resulted in significant decrease in interest expense, the retained earnings and the very strong support from our customers, our strategic partners and institutional investors that saw our deposits grow from Sh24.6billion to Sh34.6billion and our loan book from Sh17.9 billion to Sh27.9 billion.”

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