NAIROBI, Kenya – Family Bank has announced the formation of a special purpose company to manage its shares, signaling a bold move towards regional expansion.
This decision follows shareholder approval for the establishment of a non-operating holding company, which will oversee Family Bank Kenya and other non-banking subsidiaries as part of the lender’s strategic growth plans.
Family Bank is set to extend its footprint beyond Kenyan borders into East, West, and Central African markets.
“Regional expansion remains a focus for the bank in supporting our business growth and expansion strategy. We are exploring the possibility of expanding our footprint to countries within the East, West, and Central African region,” said CEO Nancy Njau.
The new holding company structure is designed to enhance capital efficiency, risk management, and governance.
“This non-operating holding company will allow for capital efficiency, risk management, and establishment of separate governance structures for both banking and our non-banking subsidiaries,” stated a release from the lender.
This move aims to shield the performance of Family Bank’s local operations from the risks associated with new markets.
The approval for the holding company comes on the heels of Family Bank’s Annual General Meeting, where shareholders also greenlit a KSh723 million dividend payout for the financial year ended December 2023.
The bank has been aggressively expanding its operations, now boasting 95 branches as of 2024.
In the last decade, Family Bank has successfully raised significant capital through corporate bonds, issuing Sh2 billion in 2015 and Sh4 billion in 2021.
These funds have fueled the bank’s robust growth trajectory. For the financial year ended December 2023, Family Bank reported a profit after tax of Sh2.5 billion, marking a 13.3% increase from the Sh2.2 billion recorded in 2022.
Family Bank’s asset base has seen impressive growth, escalating from Sh31 billion in 2012 to Sh142 billion in 2023.
Its profitability has also surged from Sh561 million in 2012 to Sh2.5 billion in 2023, underscoring the bank’s solid financial foundation.
Notably, Family Bank’s balance sheet has now surpassed the USD 1 billion mark, further reinforcing its financial stability.
