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Family Bank

Family Bank’s total assets surpassed the Ksh100 billion mark for the first time in the bank’s history in 2021. This marked an important milestone for the lender, which started as a building society in 1984 and became a fully-fledged commercial bank in 2007. The bank’s financial statements show that total assets stood at Sh111.7 billion at the end of 2021, up 21 per cent from Sh90.7 billion at the end of 2020.

Thanks to the economic recovery that was triggered by the easing of Covid-19 restrictions, Family Bank was able to register double digit growth on all key performance indicators for 2021. Customer deposits grew to Ksh81.9 billion, up 17.4 per cent from Ksh69.8 billion a year earlier, while the loan book expanded to Ksh66.9 billion, an 18.2 per cent improvement from Ksh56.6 billion in 2020.

Family Bank’s strong operating performance in the past year resulted in a strong recovery in profits and the resumption in dividend payments, which were halted across the whole banking sector in 2020 by the Central Bank of Kenya (CBK) to promote the banking sector’s stability amid the pandmeic. The bank booked profit after tax of Ksh2.3 billion, a 42 per cent jump from 2020, and paid out dividends totaling Ksh1.1 billion.

Effective implementation

Although the rebounding economy helped fuel Family Bank’s strong performance, the management’s effective implementation of the bank’s growth strategy also played a critical role in the bank’s successful run in 2021.

Family Bank’s growth strategy is anchored on its ambition of becoming a Tier I bank renowned for superior customer experience and innovative products. The tier classification system by the CBK ranks the 42 licensed commercial banks in Kenya into three tiers.

Banks in the Tier 1 category have a market share above 5 per cent and hundreds of billions in assets. They are among the top banks in Kenya. Tier II banks are medium-sized banks while Tier III banks consists of small banks.

Family Bank, currently a Tier II bank, is aggressively building towards Tier I status. It has invested heavily in branding and marketing to extend its reach to more customers and grow its market share. It today reaches more than 1.8 million customers through its products and services and has adopted digital channels to improve convenience and enrich the customer experience.

Family Bank has cut a niche for itself as a customer-centric brand. Its customers recognized it as the Best Overall Bank and the best Tier II Bank in Customer Responsiveness and Digital Experience in 2021 during the Kenya Bankers Association (KBA) Awards.

“Looking ahead, our focus is on digital transformation, fundraising to support our growth plan, regional and local expansion, partnerships with FinTech companies that will catapult our growth as we seek to build an ecosystem that drives value to our customers, their businesses and their business operations systems,” said Rebecca Mbithi, Family Bank CEO and Managing Director.

Family Bank’s strong performance and successful implementation of its strategy has enabled it to strengthen investor confidence. This has enabled it to successfully raise capital to fund its growth, including its Ksh8 billion Medium Term Note Program launched in 2021. The program’s first tranche raised Ksh4.42 billion against a target of Ksh3 billion, representing a subscription of 147.3 per cent. With funding secured to actualize its growth ambition, and a strong management team that has successfully executed in the past, Family Bank’s future looks promising. It is also reassuring that Family Bank has shunned the philosophy of “growth at any cost”.

It is keeping a close eye on its stability, even as it pumps in capital into different growth initiatives. The bank’s liquidity stood at 43.4 per cent at the end of 2021, significantly above the minimum requirement of 20 per cent. The core capital ratio closed 2021 at 20.9 per cent above the statutory requirement of 14.5 per cent.

Driving social impact Family Bank is not only focused on delivering strong sustainable growth for its shareholders, but also on driving positive social impact. Family Bank joined the United Nations Global Compact network in March 2021, underscoring its commitment to undertaking sustainable and responsible business to advance inclusive development. Working with international and local partners, it has significantly ramped up lending to economic sectors that drive development such as these initiatives include African Guarantee Fund, Blue Orchard, and the European Investment Bank, among others.

Family Bank has also invested in a robust People and Culture strategy that has enabled it to build a strong talent pipeline that is fit for the future. The bank disclosed in its Annual Report that more than 95 per cent of its 1000 plus staff are below 40 years. This underlines the work that has gone into attracting and retaining talent within the country’s youth demographic, which represents more than 75 per cent of the national population, according to the 2019 Census.

The dividends of Family Bank’s investments in its brand as an employer have started paying off. Family Bank was in 2022 recognized by LinkedIn as one of the top 25 companies in which employees can best grow their careers in Kenya. Family Bank’s CEO Rebecca Mbithi has been a strong advocate for women and youth in banking. The accountant and lawyer joined Family Bank in 2015 as the Company Secretary and Director, Legal Services.

She was appointed CEO in February 2019 and has in this short time demonstrated that women-led organizations can outperform. In recognition of her contribution to Family Bank and the wider financial service sector, she received the African CEO of the Year Commendation Award by the African Leadership Magazine for the African Business Leadership Awards 2021.

The avid marathoner, who has run in some of the world’s major marathons, including the New York, London and Berlin Marathons, has also been feted by Business Monthly East Africa three times as one of the Top 25 CEOs to Watch in Kenya 2020, 2021 and 2022. agriculture, climate-friendly investments, education, and healthcare. It has also increased its support for SMEs and women-run businesses. Some of the partners the bank has worked with to fund