Family Bank has put its planned listing and regional expansion on hold even after posting a 44.8 per cent rise in net profit to Sh1.81 billion for the year ended December 2014.
The 82-branch medium size lender, that became a fully fledged commercial bank in 2007 after operating as a building society since 1984, said it is instead consolidating its domestic presence to support growth.
Eight more branches are expected later this year after Embakasi and Migori outlets were opened earlier on, the bank said at an investor briefing in Nairobi.
It has also set aside more than Sh1 billion for upgrading its virtual banking platforms.
Chairman Wilfred Kiboro said the bank’s share price, hovering around Sh30 a piece on the over the counter market - a less regulated formal trading platform mainly between dealers – does not reflect its “true value”.
“The question that keeps on coming and I have been again asked this morning is when are you listing? The board has been consulting widely with shareholders and at the moment we don’t believe the share value is where it should be,” Kiboro said. “We should only list at the right time
to unlock the real value for our shareholders but those who want to exit, the OTC is an adequate platform.”
The listing plans were first announced in July 2011 but shelved later that year following poor
trade at the NSE run that saw investors lose over 20 per cent of their wealth.
Managing director Peter Munyiri said the Sh560 million growth in post-tax earnings was largely boosted by a 20.7 per cent jump in interest income to Sh5.37 billion while non-funded income streams mainly transaction fees and commission rose by Sh790 million, both compared with 2013.
Loan portfolio jumped Sh9.99 billion to Sh37.93 billion while deposits from its 1.6 million customer base reached Sh47.14 billion, a jump of Sh12.56 billion over 2013.
The board proposed a dividend payment of Sh0.50 from last year’s Sh0.40.