Family Bank has extended its Ksh 1.9 billion Rights Issue until January 31, 2024, to give investors more time and opportunity to participate.
The main goal of the rights issue is to fund the bank’s plans to expand its regional presence, improve its IT infrastructure, and create new products.
Family Bank shared its vision to become a tier one bank in a memo to its shareholders.
“We will achieve this by investing continuously in the bank’s six pillars of digital transformation, brand positioning, organic and inorganic growth, and a key focus on people and IT infrastructure upgrades.”
Shareholders were urged to take advantage of the lower price and the longer period to join the rights issue. The Rights Issue, which started in October 2023, lets existing shareholders buy one new share for every two they own at a reduced price of Ksh.14.5 per share.
Family Bank Group showed strong financial performance in its Q4 financial report for the period ending September 30, 2023.
It posted a Profit Before Tax of Ksh 3.02 billion, showing a positive trend.Total assets rose significantly to Ksh.140.97 billion, a 9.6 percent increase from Ksh.128.5 billion in the same period of 2022.
This growth was mainly driven by a huge increase in customer deposits, which jumped by 16.6 percent to Ksh.108.1 billion from Ksh.93.2 billion in the previous year.
At the same time, loans and advances grew by 6 percent to Ksh.84.6 billion, reflecting the bank’s strong lending activity.
Interest income increased impressively by 18 percent to Ksh.11.34 billion, but interest expenses also went up considerably by 34.6 percent, ending at Ksh.4.4 billion.However, the net interest income still grew healthily by 10.8 percent.
Family Bank’s active steps in strengthening its finances and expanding its reach show its dedication to growth and sustainability in the financial sector.
This extension of the rights issue also shows its commitment to getting support for its development goals.As the rights issue goes on, the bank is hopeful about the involvement of investors and the positive effect on its growth path.