Family Bank opens Isiolo branch in expansion plan
Family Bank has opened a new branch in Isiolo County, expanding the number of its outlets nationwide to 93.
The move is part of the lender’s medium-term expansion strategy that saw it raise Sh4.4 billion by issuing a corporate bond in June.
"As a bank … we continue to reaffirm our commitment to providing quality and easily accessible financial solutions to our customers and we are committed to extend similar quality and efficient services to the people of Isiolo,” chief executive Rebecca Mbithi said.
Small and medium-sized enterprises form over 80 percent of Family Bank’s customer base and the lender says it will continue to prioritise this client group in its lending.
The bank says Isiolo presents opportunities arising from diverse economic activities including tourism besides current and planned major infrastructure projects in the Lamu Port, South Sudan, Ethiopia Transport Transport Corridor (Lapsset).
“The county has created a conducive business environment and that is why Family Bank is able to set foot and open its first branch in Isiolo,” Dr Ahmed Galgalo, Isiolo County Secretary, said.
“Isiolo is a growing economic hub with great potential and I would like to urge the business community to take advantage of opportunities with Family Bank, a bank that believes in supporting small and midscale businesses.”
Family Bank in June raised Sh4.42 billion against a Sh3 billion target in a new bond issue that has a maturity of 5.5 years. The lender is using the funds to expand across the country.
The bank’s net profit for the first six months to June grew 83.9 percent to Sh1.17 billion driven by growth in interest and non-interest income.
The net earnings rose from Sh638.4 million posted in the preceding similar period, placing the lender on course to post record full year earnings.
Net interest income in the six-month period grew by 25 per cent to hit Sh3.6 billion on the back of the loan book growing 15.5 percent to Sh63.3 billion.
Non-interest income, mainly related to fees and commissions, grew 18.2 per cent to Sh1.5 billion and helped to boost the bottom-line.
Operating expenses rose by 4.6 per cent to Sh3.5 billion partly driven.