Shareholders of Jamii Bora Bank Limited (JBB) have today endorsed the bank’s strategic plan as presented at the annual general meeting of 2016. The bank’s key strategy is to raise capital to support its growth and scale up the business.
At the annual general meeting of the bank, the shareholders expressed their confidence in it’s performance sighting that the bank has a fully constituted and active board with 6 of the 11 board members being independent. They urged the management to continue with strategic bank projects and were confident that the team led by a highly skilled and qualified executive committee shall be able to meet the bank’s set targets.
Key among these projects is capital raising to enable the bank expand its reach and move closer to customers who are majorly SMEs. The bank has so far raised 1.2Billion shillings in form of debt to be converted to capital by the end of the year and is looking to raise an additional KES3.8 Billion. Kes800 million being debt and KES3billion from a strategic partner/investor.
Speaking to the shareholders during the meeting, Bank Chairman, James Gacheru, said the additional capital would help the bank to sustain its current growth strategy within the Central Bank of Kenya’s statutory ratios on capital adequacy and liquidity.
“With the kind of growth envisaged by the Bank in the next 4 to 5 years this additional capital will prove crucial to the bank’s ability to fuel its own growth in the future,” said Mr.Gacheru. “We will continue to increase our branch network to enhance our accessibility to our customers. This quarter, we intend to set-up shop in Embu and Ruaka town. We will also open 3 satellite branches at select Uchumi outlets. This way we will be able to deliver banking services to our customers in a model that is a hybrid of a full branch and agency banking”, he added.
The shareholders also approved the bank’s audited accounts for 2015 which reflected a profit of Kshs. 76 million before tax over the last year, among other key performance indicators.
In the bank’s 2015 financial performance, the loans and advances increased from Kshs. 6.1 Billion in January 2015, to Kshs. 10.1 Billion as at 31 December 2015. Deposits grew from Kshs. 8.4 billion to Kshs. 10.9 billion, in the same period.
“In 2016, we want to grow our balance sheet to Kshs. 35 Billion by aggressively marketing our products and services to the small and medium size enterprises,” said Mr. Sam Kimani; C.E.O, Jamii Bora Bank.
Delloite & Touche were reappointed as the bank’s auditors for another year in line with the provisions of the Companies Act.
The Chairman said the bank was in the process of implementing a 3-year channel expansion strategy to create a modern banking platform suitable for younger consumers and the young at heart.
He also told the shareholders that the bank was in the process of creating value-adding partnerships that would help the Bank enhance its products to adequately cater for the Bank’s target customers, to bolster its performance and enhance its reach and increase its footprint in more counties with the country.