Family bank outlines branch expansion plans
07 August 2014, 10:29
Nairobi - Family Bank, buoyed by an impressive set of financial results,
announced an ambitions expansion plan that will culminate in the roll out of
new branches in the country.
“We opened our 76th branch at City Hall Annex and will be relocating the
Dagoretti branch to a new site along Ngong Road.
"We have lined up at least 10 new branches targeting increased business in
the devolved units. New branches in Ukunda and Malindi will be opened for
business within two months," Managing Director and Chief Executive
Officer, Peter Munyiri, said.
He added that the expansion was strategic and guided by the county banking
roadmap aimed at optimizing the devolved governance structure.
The bank has meanwhile announced its half-year results, posting an impressive
87 percent growth in profits to KSh 1,31 billion from the similar period last
It comes barely a year after the bank for the first time broke the Sh 1
billionceiling – when it posted a 108 percent growth.
The bank has been on a growth trajectory hitherto witnessed since conversion to
a bank six years ago. Over the same period it has more than doubled its branch
network from 35 to 73.
At 87 percent profit growth, the bank continues to grow faster than all the
The nearly twofold growth in earnings is attributed to increase lending. The
bank’s loan book expanded 18 percent to Sh 33 billion as at end of June 2014
from Sh 27,9 billion as at December 2013.
This was driven by increased lending to SMEs and personal consumers.
Munyiri said the county banking strategy to romp in more customers had also
bolstered the bank’s performance.
“We are leveraging the enormous opportunities afforded by the devolved units
guided by our ambitious strategy of becoming a tier one bank. Equally our loan
book continues to expand signifying the strong support by our customers
countrywide," said Munyiri.
The mid-tier lender has embarked on an expansion binge – riding on the emerging
business opportunities in the counties – as it races to grow shareholders’
value and venture into the top tier space.