Bank led by Kenyan banker Rebecca Mbithi plans expansion with $62.1 million rights issue

by MMC
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Family Bank Limited, a Nairobi-headquartered commercial bank led by Kenyan banker Rebecca Mbithi, is gearing up for regional expansion with a Ksh9.3 billion ($62.1 million) rights issue approved by its shareholders on Wednesday October 18.

The move comes as Family bank is looking to strengthen its presence in the East African region, marking an important step in its growth strategy. The rights issue will offer existing shareholders one additional share for every two held, making a total of 643.5 million new shares at a price of Ksh14.5 ($0.0967) per share.

This significant capital raising effort began on October 19 and is expected to conclude on November 30, with proceeds intended to fuel the bank’s regional expansion initiatives and support new lending activities.

Family Bank’s expansion strategy involves allocating Ksh4 billion ($26.6 million) to venture into new markets, using a combination of greenfield investments and potential mergers and acquisitions.

An additional Ksh2 billion ($13.3 million) will be allocated to improve the bank’s IT infrastructure and introduce new product offerings. Additionally, Ksh3 billion ($20 million) will be dedicated to supporting lending activities as the bank aims to diversify its portfolio and strengthen its presence in the region.

Founded in 1984, Family Bank was granted commercial bank status in 2007 following the issuance of a banking license by the Central Bank of Kenya. Currently, under the leadership of Rebecca Mbithi, the bank operates a network of 93 branches, 5,900 agents and 144 ATMs, serving customers in various sectors, including retail, corporate, SME and microenterprises.

In his Fiscal year 2022Family Bank has experienced significant financial growth under the leadership of Rebecca Mbithi. The bank’s operating profit increased from Ksh10.77 billion ($71.86 million) to Ksh12.13 billion ($80.94 million).

Total assets also saw remarkable growth from Ksh111.74 billion ($745.6 million) to Ksh128.51 billion ($857.5 million), with retained earnings experiencing a slight slight decline. improvement from Ksh6.88 billion ($45.9 million) to Ksh6.91 billion ($46.1 million). million).

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