Family Bank more than doubled its net profit in the year to December 2013 helped by a sharp drop in interest expenses and increased lending.
The mid-tier bank said net profit stood at Sh1.2 billion last year compared to Sh561 million a year earlier helped by increased income from loans.
Family Bank managing director Peter Munyiri attributed the profit growth to diversification of products to sectors such as retail and consumer, lending to SMEs, agribusiness, corporate, trade finance and bancassurance.
The lender held its dividend at last year’s level of Sh0.40 a piece to preserve cash that will help shore up capital ratios and fund the opening of new branches.
The dividend payout will be a boon to top shareholders including Kenya Tea Development Agency (KTDA) which owns 15.37 per cent and pension fund LAP Trust (4.2 per cent) – who also benefited from bonus offer in the ratio of 1:1 held last year.
The home-grown lender grew its interest income by Sh1.1 billion to Sh4.4 billion in what has been linked to high interest margins that benefited the entire industry.
Family Bank’s loan book expanded 56 per cent last year to Sh27.9 billion compared to Sh17.9 billion in 2012.