Family Bank MD David Thuku. FILE PHOTO | NMG
Family Bank is set to close two of its branches in the next two
weeks and one more in the next six months in a move aimed at cutting
costs to boost the bottom line.
The lender, which let
go about 150 employees across its branches last December, says shutting
down the outlets will save about Sh36 million annually.
The bank posted a net loss of Sh743 million in nine months to September 2017, compared to a net profit of Sh963 million in a similar period the previous year.
“We
intend to close Family Bank Tom Mboya branch in Nairobi, Family Bank
Kisumu Reliance Bank in the next two weeks and Family Bank Bamburi
branch in Mombasa in the next six months,” said managing director David
Thuku in an interview.
He said employees in the three affected branches will be
re-deployed to other branches across the county. The three branches have
about 30 staff members.
Customers in the affected
branches will access services such as cheque book collection, ATMs and
Family PesaPap agency in nearby branches.
“The Family
Bank Tom Mboya branch in Nairobi will be relocating to River Road West
on River Road near the River Road/Latema Road Junction and adjacent to
Davis and Shirtliff. Similarly, in Kisumu, Kisumu Reliance Branch will
be merged with Kisumu Express Branch. The two are just a couple of
metres apart,” said Mr Thuku.
“In
Mombasa, the Family Bank Bamburi branch will be closing down due to a
change in the economic viability of the branch within its current
location and its operations shall be moved to Family Bank Digo branch.
This will take effect within six months.”
The mid-sized
lender which will be left with 91 branches after the shutdown posted a
46 per cent net interest earnings to Sh2.94 billion in 2017 in the nine
months through September from Sh5.47 billion the previous year.
Its staff cost dropped by nearly a fifth or about Sh400 million to Sh1.6 billion in the period.
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