5 Reasons why i'll BUY family bank shares

[00:00:00]Five reasons why I will buy Family Bank shares. I'm making this video on Thursday. Okay, by the way, let me confirm. Yes, it's on Thursday, 18th of June, 2026. Family bank shares will be listed on Nairobi Securities Exchange on 23rd. That will be on Tuesday next week.

[00:00:22]How many days? Friday, Saturday, Sunday, Monday. Four days to go. I'm giving you five reasons why I will buy this company.

[00:00:32]This is good Joseph. In case you've been watching me without subscribing, go ahead and do so right now kindly. And by the way, if you're watching me for the first time, make sure that you subscribe and of course like the video and also leave a comment on the comment section.

[00:00:45]All right, let's get on the business.

[00:00:46]What are these five reasons that are compelling me? You see, for me, I don't rush investing my money anyhow. I don't just buy any company. I do an extensive research to make sure that wherever I'm depositing my money, I can substantiate as to why I am putting my money there.

[00:01:04]Reason number one, this company is that the bank is growing profit at an exemption already. That's for sure.

[00:01:11]That's for sure. Let me give you numbers here. Numbers don't lie. One of the biggest reason to invest in this bank and growth is the family bank uh delivering exact that. Why? 2025 profit after tax rose to about 5.4 4 billion Kenyan shillings representing a growth of more than 55% from the previous 55% growth from the previous year that was 2024 to attune a profit of 5.4 4 billion Kenyan shilling. Sure, it is not making profits like the equity and the KCB. For God's sake, Family Bank is a tier 2 bank heading to a tier one bank believing so and they rose with 55%.

[00:01:53]As if that's not enough, quarter 1 of 2026 profit jumped another 52.6% to around 1.6 6 billion Kenyan shilling the strongest quarterly performance in the banks history or if you're a typical Kenyan history you get what I'm saying that is an opportunity number two or the second reason why I'm going to buy this bank the 18 shilling listing price that they have settled on the family bank will start trading on Nairopi securities exchange at an at a reference price of 18 shilling per share implying the market valuation of about 29.9 billion Kenyan shilling in other words I'm saying if the price is they quoting it at 18 shilling then that implies if you do all the calculation it implies the market valuation or the valuation of our company at around 29 29.9 billion Kenyan shilling based on the 25th profit approximately based on 2025 profit of approximately 5.4 billion as I've shared up there the implied PE ratio price to earning ratio is roughly around 5 to six times the earning for for for context many profitable estate banks in Kenya often trade at significantly higher valuation multiplies when investors expect continuous growth. This mean that the market may getting a fast growing bank at a relatively at at a relatively reasonable valuation.

[00:03:34]Did you get that point? Okay, let me make it very simple. If they are you are buying that share at 18 shilling and actually yesterday when I was making the video explaining to you that they have now settled at 18 shilling, they have actually given different valuation.

[00:03:48]Some valuation are saying the company is worth around say 29 shilling, others 43 shillings, 33 shillings. the book to the PB ratio the book to price to book ratio it's around 20.68 6 8 shillings or thereabout you buying it at 18 shillings you are definitely buying it at a discount let's say crazyly let's say I mean let's say let's let's say they don't even go to 50 or 43 or whatever they think it is let's say they go at par with companies such as Absai cooperative around thatish there so from 18 to 33 what do you think that is in terms of capital gain because for me getting into this family bank This is a good company that you can buy for value for long term. They aren't paying that decent in terms of dividends around 1.2 shilling per every share as dividend may not know that big much. I mean you can't compare that with Stan big bank. You can't even compare that with say KCB but this is a company that you have the chance to accumulate more as you can. Again before I even go to the reason number three the other the other thing is this you know I was I was looking actually the shareholders of this company likes of them new family moan advocate the KTDN the rest you never know maybe probably they're going to release some of these shares in one way or the other and can get you an opportunity to actually you know own more of these banks.

[00:05:12]Sometimes I sit down and figure out how do James Mang the current CEO of Equity Bank and the DJ Muryuki the current um CEO of corporate bank field you know earning owning around 1.22% 22% thereabout.

[00:05:28]So sweet.

[00:05:30]Good. Let's go to the reason number three. The bank is becoming a major play. True. Family bank is a tier two bank heading to a tier one bank.

[00:05:40]Why? Let's go ahead and get some things here. Family bank is no longer a small lender. Well, as it used to be. Total asset reached about 230 billion Kenyan shilling. That is the total asset owned by this bank. customer deposit grew to around 168 billion Kenyan shilling. All right. So you can see whatever they own and what they owe there is a difference.

[00:06:01]You get what I'm saying? Okay. The net loss the net loans rather exceeding 108 billion Kenyan shilling. Okay. Customers they have brought in 168. Uh the total valuation of this company in terms of the assets around 230 and they have actually issued around 108 uh billion Kenyan. Though we have some issues with the NPLs with the family bank that is non-performing loans there there thereabout but I believe they're going to work on that of course to make this banks look even more attract attractive more than it is right now. Okay. Now these numbers place family bank among the Kenyan's most mid-tier banks and strengthen their vision of eventually becoming a tier one bank. And I think that is the mission of this family bank.

[00:06:44]All right. Sure. Good. But there's something I want to tell you before I even go to the fourth reason as to why I'll buy this bank. If I close my financial eye so that I can internalize this information in 10 years time to come, I'm not seeing Kenya having a lot of banks.

[00:07:06]Probably Kenya will have around 20 banks, 25 banks there about right now we are at around 40ish there. The CBK is threatening regulation more and more.

[00:07:16]Number two, I was listening to what the Joshua Oara was saying. Uh the current CEO of Standig Bank which is like a hand of stand is it uh uh standard standard bank from South Africa that they were looking forward into becoming the biggest lender in this country.

[00:07:39]In between now and 10 years I'm seeing a lot of mergers and acquisitions.

[00:07:45]Banks will come together, merge, become one bank. Don't be shocked if one day KCB and Equity merges and become one. If those two banks dares to merge, wa might be the biggest bank in Africa. I'm telling you. I'm telling you, it can tr the standard.

[00:08:05]I'm telling you.

[00:08:08]Okay, let's go to the point number four.

[00:08:09]That is just me thinking out loud. Okay, me thinking out loud and and them merging and acquiring each other and whatever they become a big big big big thing that is time now you admire to buy loes but be very very expensive okay number four NS listing could unlock significant value true you see these shares of family bank have been trading OTC that is over the counter okay you walk in you buy the shares you walk out so it's not exposed to the external market out there and investing in water. Do you know as we speak right now, as we speak right now, go read today's newspaper. I'm not advertising that newspaper. I would even tell you which one.

[00:08:58]Investors of this bank by virtue of this company being listed on the Nairobi securities exit. They will earn 2 billion Kenyan shilling by virtue of it just being listed.

[00:09:11]Ding, ding, ding, ding, ding. Start trading. the investors boom they have locked in two billion Kenyan shilling two billion Kenyan sh sometimes this money is made when ah man I was reading through that uh information and I realized that some I won't mention those companies you can go read that information um some bought around 500 million shares some bought 10 and something million shares D they were just positioning themsel it's like they had the information but but again I have been sharing this information like over an year I think it's more than year you can go verify that about this family bank being listed could have taken that opportunity go buy these shares over the counter I mean these companies their position is by virtue of them these shares being listed on securities ex on Tuesday next week these investors will earn 2 billion Kenyan shielding if they decide to sell obviously that is paper appreciation if they decide to sell their shares man I'm telling you money goes to money man was looking on or the investors of this company. Hey, wow.

[00:10:17]If you're not investing, bro, sees, you have a long way to go. Okay, fine. The point number four was this company by virtue of it being listed on the Nairobi Securities Exchange will actually unlock a very big value. Big value. Let me just read you something about that. Okay. For nearly two decades, family bank shares have mainly traded over the counter.

[00:10:37]True OTC. Starting June of 2026 the shell become available for entire investing public through the Nairobi securities ex okay are we together by the way I hope one day Nairobi sec we have another trading platform rather than the Nairobi securities ex just like we have NASDAQ and whatever anyway this creates three major benefits one creates uh greater visibility two more liquidity three more institutional investor participation this one is sweet many investors have never been able to buy family banks before. Once trading opens, demands could uh demands could actually increase uh simply because access becomes easier.

[00:11:17]True. I know some of you be like, okay, why how are they buying those over over the counter shares? How it was a bit complicated. You couldn't just walk in and buy shares and something like that.

[00:11:26]But now being traded publicly, number five, the last one, but not the least, of course, management is executing a clear growth strategy. The bank has spent several years preparing for this moment. True. Just like I said, I've been sharing this information for over an year. I think it's even close to two years when they say they're going to be trading on the I'm thinking it two years or over for me saying for me strengthen capital levels management has done what they have actually strengthened the capital level expanded the balance sheet improved profitability as you have seen it you know in abs of 55 52 5 whatever percentages successfully obtained the CMA approval for listing again you can't be listed if you do not get the CMA approval CMA's capital market authority of Kenya are we are we to It makes sure that whatever the company is being listed uh you know go through the the required uh you know threshold and and what have you. We call them the reducible minimums. The other thing is position the bank for further expansion.

[00:12:30]Mic down. Those are my five reasons why I will definitely not consider buying buying this company. Let's go ahead and give it a shot. You never know. This is good Joseph all the time. I try the best I can to make videos of such kind to to educate you. I was about to say to eliminate to educate you to educate you give you this information perhaps you may not get it out there and u I do the dunky work simplify it it's a very detailed thing I had my team had prepared for me you know I do the research my team prepares so you get what I'm saying so I just come here I summarize the information so that at least it can be easy for you to digest swallow assimilate in your system so that you can take you know advantage of it. This is good Joseph. If you need my services one way or the other, my number is always on my profile bio. You can pick it up there.

[00:13:24]Shoot me a text or a call. Let's talk business. Are we together? I mean, if you will never make this world the better place, let's make our pockets the better place. See you in the next one.