INTEGRATED REPORT & FINANCIAL STATEMENTS2017 2017 | INTEGRATED REPORT & FINANCIAL STATEMENTS REPORT 2017 | INTEGRATED Family Bank Towers, Muindi Mbingu Street | P.O. Box 74145 - 00200, Nairobi, Kenya | Tel: 254-2-3252 445/0703095 445 Email: [email protected] | Website: www.familybank.co.ke 1 2 FAMILY BANK LIMITED INTEGRATED REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 1 ABOUT THE INTEGRATED REPORT AND AUDITED FINANCIAL STATEMENTS 2017 Family Bank Limited is pleased to present its annual Integrated Report, which covers the period from 1 January 2017 to 31 December 2017. This report contains comprehensive information of our financial performance, stakeholders, governance, material issues, risks and opportunities and how these influence our strategic initiatives. In this report, Family Bank demonstrates how we create and sustain value through our business. This report is compiled and presented in accordance with the Corporate Governance Guidelines and Codes of Conduct prescribed by the Central Bank of Kenya, the Corporate Governance Guidelines of the Capital Markets Authority (CMA), the Continuing Listing Obligations of the CMA as required by the Nairobi Securities Exchange and the Global Reporting International (GRI). We have implemented the framework as far as practical and our approach to integrated reporting will continue to evolve over time, in line with the framework. Our Annual Financial Statements were prepared in accordance with International Financial Reporting Standards (IFRS) and the requirements of the Companies Act, 2015. We received external assurance from our auditor, PWC Kenya on the fair presentation of these annual financial statements. See the Independent Auditor’s Report on pages 58 to 61. 2 3 Family Bank Vision, Mission and Core Values 4 5 ONGOING TRANSFORMATION PROGRAM Family Bank remains focused on its transformation program to optimally gain size and scale eciently… Strategic pillars 2018 Family Bank Strategic Pillars 1 Profitability 2 Customer 3 Brand 4 Distribution 5 Technology 6 Risk Centricity Model Management Cost Roll out Roll out brand Branch Systems review and Enhanced Management & Customer Value campaign Transformation rationalization Risk and Proposition LEAN processes to sales outlets Compliance exercise and Scale up and Aggressively drive Refine business track Net sustain digital Drive self- IT eciencies framework model Performance brand proposition service through Rigor on Credit Product Score alternative Risk optimization Customer channels Management Relationship Management (CRM) roll out 7 Human Resources Change management in line with the transformation program and drive an improved sta satisfaction index 2017 6 7 SUBSIDIARY • Advisory Insurance services on General, Marine, Agriculture and Medical insurance policies and Medical insurance Agriculture Marine, on General, services Insurance • Advisory and individuals groups for products Assurance • Life services medical scheme administration and Staff • Group • Claims Management Financing Premium • Insurance that to ensure system IT Banc assurance robust and an integrated through offered are and products All these services across delivery service of efficiency enhance to connected well are and all branches served well is business insurance the country. The Agency also facilitates access to professional insurance advisory services and also avails convenient and accessible and accessible convenient and also avails advisory services insurance professional to access also facilitates Agency The banking and alternative outreach the wide branch through customers our by service and claims policies insurance channels. OUR SERVICES FBIA is a leading provider of risk management & insurance brokerage solutions. It has more than 50 members of staff, than 50 members of staff, solutions. It has more brokerage of risk management & insurance FBIA is a leading provider representation and risk management needs with your insurance to handle and qualified experienced adequately the country. across 90 branches in over Through strata. the wide economic across needs of Kenyans the insurance address is to main objective Agency’s The insurance innovative bouquet of a full offers FBIA the industry, in companies insurance with reputable partnerships and banking of insurance is the provision model. Bancassurance using the Bancassurance and services products the same client base. channel and to distribution a common through and services, products FAMILY BANK INSURANCE AGENCY BANK INSURANCE AGENCY FAMILY in was established Family Bank Limited, subsidiary of (FBIA), a fully-fledged Limited Agency Bank Insurance Family (IRA) Authority Regulatory the Insurance by licensed was Agency then named Dhamana Insurance Agency, 2008. The its current to Agency Dhamana Insurance from rebranded was when the Agency 2015, December By 2010. in May of a GWP to of Ksh 190 Million in 2011 (GWP) Premium Written a Gross from grown has steadily business The name. 2017. ended 31 December the year Ksh 800 Million for ONGOING TRANSFORMATION PROGRAM Family Bank remains focused on its transformation program to optimally gain size and scale eciently… Strategic pillars 2018 Family Bank Strategic Pillars 1 Profitability 2 Customer 3 Brand 4 Distribution 5 Technology 6 Risk Centricity Model Management Cost Roll out Roll out brand Branch Systems review and Enhanced Management & Customer Value campaign Transformation rationalization Risk and Proposition to sales outlets LEAN processes Scale up and Compliance exercise and Aggressively drive Refine business track Net sustain digital Drive self- IT eciencies framework model Performance brand proposition service through Rigor on Credit Product Score alternative Risk optimization Customer channels Management Relationship Management (CRM) roll out 7 Human Resources Change management in line with the transformation program and drive an improved sta satisfaction index 2017 THE COMPANIES ACT 2015 FAMILY BANK LIMITED ANNUAL GENERAL MEETING NOTICE IS HEREBY GIVEN that the 11th ANNUAL GENERAL MEETING of the Shareholders will be held at KENYATTA INTERNATIONAL CONFERENCE CENTRE AMPHITHEATRE on Wednesday 27th June 2018 at 10:00 a.m. to transact the following business: Ordinary Business: 1. To receive, consider and if thought fit, adopt the Integrated Report, the Audited Financial Statements for the year ended 31st December, 2017, together with the Chairman’s, Directors’ and Auditors’ reports thereon. 2. To consider and if deemed fit, approve the recommendation of the Board that there shall be no dividend paid for the year ended 31st December 2017. 3. Resignation, Rotation and Election of Directors in accordance with Article 112 of the Articles of Association: 3.1 Dr. Ruth Waweru retires by rotation and being eligible, oers herself for appointment in accordance with section 132 of the Companies Act. 3.2 Mr. T. K Muya, a Director, having attained the age of seventy years retires from oce by rotation and, in terms of Clause 2.5 of the Capital Markets Code of Corporate Governance Practices for Issuers of Securities to the Public 2015, oers himself for re-election. 4. To receive, consider and if thought fit approve the Directors’ remuneration for the year ending 31st December 2017. 5. To approve that the auditors PricewaterhouseCoopers (PwC), being eligible and having expressed their willingness, will continue in oce in accordance with section 721 of the Companies Act, No. 17 of 2015 and to authorize the directors to fix their remuneration. By order of the Board Rebecca Mbithi Company Secretary Nairobi 6th June 2018 Notes: A member entitled to attend and vote at this Meeting may appoint a proxy to attend and vote on his/her behalf and such proxy need not be a member of the Company. The proxy shall be required to be deposited at the Company Secretary oce 8th Floor at Family Bank Towers Muindi Mbingu Street Nairobi not less than Forty-eight hours before the time for holding the meeting failing which it shall be invalid. In the case of a corporate body the proxy must be under its common seal. The proxy form is available on the Company’s website www.familybank.co.ke The full set of audited accounts for the year ended 31st December 2017 is available at the Company’s registered oce at Family Bank Towers 6th Floor, Muindi Mbingu Street Nairobi or can be downloaded at the website www.familybank.co.ke 8 CORPORATE INFORMATION DIRECTORS Non-Executive Dr. Wilfred D. Kiboro- Chairman Mr. Titus K. Muya Dr. Ruth Waweru Mr. Lazarus Muema Mr. Lerionka S. Tiampati Mr. Francis Gitau Mungai Executive Dr. David Thuku - Managing Director and CEO COMPANY SECRETARY Rebecca Mbithi Certified Public Secretary (Kenya) 8th Floor, Family Bank Towers, Muindi Mbingu Street P.O. Box 74145 - 00200, Nairobi Tel: 254-2-318173/318940/2/7/0720 098 300 Fax: 254-2-318174 Email: [email protected] Website: www.familybank.co.ke REGISTERED OFFICE Family Bank Limited 6th Floor, Family Bank Towers, Muindi Mbingu Street P.O. Box 74145- 00200, Nairobi Tel: 254-2-318173/318940/2/7/0720 098 300 Fax: 254-2-318174 Email: [email protected] Website: www.familybank.co.ke AUDITOR PricewaterhouseCoopers Kenya Certified Public Accountants PWC Tower, Waiyaki Way/Chiromo Road, Westlands P.O. Box 43963-00100 Nairobi, Kenya LEGAL ADVISERS Mboya Wangong’u & Waiyaki Advocates Lex Chamber, Maji Mazuri Road Off James Gichuru Road Nairobi 9 CORPORATE INFORMATION CORRESPONDENT BANKS Deutsche Bank AG London 6 Bishopsgate London EC2P 2AT United Kingdom DZ Bank AG 60265 Frankfurt am Main Deutsche Bank Trust