Family Bank ties NSE listing to General Election
Posted Thursday, May 31 2012 at 21:00
The bank’s plan to list aims to boost liquidity and offer its investors an exit route.
Last year, Tunis-based Africinvest, Netherlands’ FMO, and Norway’s Norfund made a joint equity investment of Sh1 billion in the bank that gave them a 22.4 per cent stake.
Its net profit dropped marginally to Sh354.6 million last year from Sh354.69 million in 2010 on high operating expenses that grew to Sh3.24 billion from Sh2.6 billion.
Mr Munyiri said the bank is counting on new product lines, expansion to new markets, and increased capital to return to profit growth.
The bank, whose products have targeted the low-end of the market, aim at widening its product offering to include home loans, corporate banking, and forex trading with focus on corporate lending.
A stronger Family Bank is looking to lend more to companies and big ticket projects in the property market to grow its lending book and push it to the top tier of Kenya’s banking sector.
Central Bank of Kenya places its market share at 1.3 per cent compared to Kenya Commercial Bank (14 per cent), Barclays Bank (8.3 per cent), and Equity Bank (8.8 per cent).
Family Bank has tapped former executives of top tier banks as it seeks to replicate their business model in what could raise the stakes in the lending market.
Human capital has become the most sought after resource for market share growth in Kenya’s banking industry where business ideas are being copied with speed, sparking a talent war.
Family Bank has been modelling its strategy on that of Equity Bank, which has upset Kenya’s conservative financial sector with the rollout of products that are popular with the low-end of the market, which has traditionally been considered high risk.