FAMILY BANK GETS CMA NOD TO RAISE 8B TO ANCHOR ITS GROWTH STRATEGY

Family Bank Chief Executive Officer Rebecca Mbithi, briefs members of the fourth Estate. PHOTO /VERA SHAWIZA

FAMILY BANK GETS CMA NOD TO RAISE KES 8 BILLION TO ANCHOR ITS GROWTH STRATEGY

 

 

 

 

By Vera Shawiza

 

 

 

 

Family Bank has received formal approval from the Capital Markets

Authority to raise up to KES 8 billion in tranches through a multi-

currency Medium Term Note (MTN) by way of public offer to

strengthen its capital base and support lending.

 

 

 

 

The Bank targets to raise KES 4 billion in its first tranche with the

balance to be raised within the next five years in various

tranches/series.

 

 

 

 

“We are positioning the Bank for the second phase of growth as per

our 2020 – 2024 strategy anchored on growth and stability of the

bank. Through this capital raising, the Bank is eyeing to strengthen

its capital base to support lending to micro, small and medium-sized

enterprises and heavily invest in technology infrastructure while

diversifying our product and market offerings,” said Family Bank

CEO Rebecca Mbithi.

 

 

 

 

Profit before tax over the past five financial years grew at

compounded annual growth rates of 21.3% from 2016 to

2020. Interest Income continues to be the Bank’s primary revenue

stream contributing on average 77% of total income, over the past

five years. There has also been an impressive increase in non-

funded income, which has grown by a compounded annual growth

rate of 4.9% over the past five financial years from KES 2.1 billion in

2017 to KES 2.6 billion in 2020. The growth is mainly attributed to a

significant increase in foreign exchange trading income and fees

and commissions on loans and advances. On the balance sheet side,

the Bank has recorded impressive growth in total assets at a

compounded annual growth rate of 6.9%, customer deposit at

13.9%, shareholder funds at 1.3% and loans and advances at

3.1% over the past five financial years during the period 2016 to

2020.

 

 

 

 

Ms Mbithi also added, “We are confident of the Bank’s upward

trajectory of growth not only backed on our financial strength, our

footprint as Kenya’s fourth largest bank in branch network but also

the competence of the Board, Management and staff coupled with

strong market offering necessary to scale the Bank’s growth’s

ambitions.”

 

 

 

 

The lead transaction advisors are NCBA Investment Bank and

Genghis Capital, PricewaterhouseCoopers (PwC)as the reporting

accountants, MTC Trust and Corporate Services Limited as the Note

Trustees, Mboya Wangong’u & Waiyaki Advocates as the legal

advisors and Tim-Sky Media Services as the Media and Public

Relations consultants.

 

 

 

 

This issuance comes after the Bank successfully redeemed its five

and a half years (5 and ½ year) Medium Term Note worth KES

2.0188 billion on 19th April 2021.

 

 

 

 

Family Bank prides itself in growing a very strong retail customer

base with a key focus in SME Banking. From only one branch in

1985, the Bank has grown over time and currently enjoys a branch

network of 92 branches, 4,000 bank agents and over 10,000

merchants countrywide. Family Bank was the first bank in Kenya to

introduce paperless banking through smart card technology that

enabled customers to transact without having to fill in deposit or

withdrawal slips.

 

 

 

 

In 2010, Family Bank was the first bank to

introduce mobile banking in Kenya and in 2016 the first to launch

the mVisa service in Africa. The Bank has received numerous

awards including the Think Business Fastest Growing Bank Award

three years in a row between 2013 and 2015, the Think Business

Best Bank in Micro-Finance Award, 1st Runner-up in 2013 and 2014.

 

 

 

 

In 2017, the Family Bank was feted as the Best SME Bank in Kenya at

the annual Banker Africa Awards, East Africa – an award initiative

for financial institutions in Africa. In 2021, Family has been voted

best Tier2 bank on customer experience in Kenya. For more

information about Family Bank, please visit www.familybank.co.ke

 

 

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