CITY FINANCE BANK FACT BOOK

SHAREHOLDER STRUCTURE

City Finance Bank is a public company 100% owned by 900 Kenyan shareholders. A few large institutional shareholders control about 25%, another handful of individuals 15% and the rest is spread over a large number of shareholders

HISTORY OF THE BANK

City Finance Bank Limited was incorporated in 1985 as a Limited Liability Finance Company. It was converted to a fully fledged commercial bank in 1996. The bank operated successfully and profitably opening a second branch in Nairobi Industrial Area in 1997. By mid 1998 the bank had a customer deposit base of shs3.2bn.
In 1998, there was a banking crisis leading to the collapse of as many as 6 banks. City Finance Bank due to common shareholding and association with Trust bank was affected and the bank was placed under protective statutory management.
 
With strong determination on the part of the management at City Finance Bank and commitment on the part of depositors, a court-approved scheme of arrangement was reached to convert 80% of deposits into equity with a 4year repayment plan for the balance 20%. This led to the reopening of the bank. It is note worthy that this was the only bank that reopened and continues to be in business. The conversion of deposits into equity resulted in the bank becoming a public limited company with more than 900 shareholders.

Milestones

1) CFB aims to be the leading bank of choice of middle sized businesses in Kenya. The bank targets new and existing businesses and works with them to help them grow and share in their success.

2) CFB aims to be the leader in supporting high net worth individuals in their individual or business capacity to actualise their personal goals.

3) CFB aims to be the bank of choice for Kenyans based outside Kenya who wish to identify themselves with a bank that will help them meet their goals including partnering with them in investment and domestic projects.

4) CFB aims to achieve industry average operating efficiency (Cost: Income), return on assets and NPLs by 2008. Thereafter the bank aims to improve by 10% per annum.

5) CFB aims to employ best practice and sound management on:

i.Ethical banking
ii.KYC
iii.Anti Money Laundering
iv.Risk Management
v.Equal opportunity and employee code of conduct.

COMMENT ON 2006 AUDITED RESULTS AND HALF YEAR 2007 RESULTS

The bank ended the year 2006 with a loss of Kshs 18 million from Kshs47 million the previous year. The half year results as at June 2007 had a Kshs10.7 m loss. The end of year results are projected to be a modest profit of Kshs 4.7 million as the bank begins its upward climb having overcome key hurdles.

key highlights.

The continued loss making position was due to some heavy provisioning for some large loans that had gone bad over the period. This has continued over the first half of 2007 but trend is now expected to reverse in the latter half of 2007.
The bank is on an aggressive loan recovery approach and expects to recover substantial amounts of loans.
The bank has embarked on a manpower strengthening strategy and has started hiring experienced professionals starting with the CEO

CORE VALUES

1. We have mutual and beneficial working relationships.

2. We are team driven by common goals towards profitability.

3. We listen to our customers and strive to understand and fulfil their needs.

4. We always aim to achieve excellence.

5. We exhibit the highest levels of integrity and ethical standards in all that we do.

6. We strive to provide

7.We are geared to understanding and adopting the best practices in the banking industry.

8. From the highest level of the organization, we will seek ways of making positive and tactful contribution to the welfare of the society.

9. We will participate and take advantage of the diversity of cultures.

10. We are an equal opportunity employer.

11. Based on the structure and nature of the market, the bank has chosen to be a niche banking services provider with the target market of:

a) High net worth individual customers
b) Business accounts
c) Non resident Kenyans
d) NGO’s
.

The present Board of City Finance bank Limited consists of four directors who meet regularly to ensure proper Corporate Governance.

	J.DAVID KABEBERI Charman
	Mr.R.G.Njoba
	Mrs.Veena Jiwa
	Dhirajlal Shah
	Mr. Arvinlal N.Shah
	Company Secretary Auditors Lawyers Taibjee &Bhalla and Nyamondi & Company Advocate .   DELOITTE & TOUCHÉ CERTIFIED PUBLIC ACCOUNTANTS (KENYA) “KIRUNGII” RING ROAD, WESTLANDS P.O BOX 40092 GPO 00100 NAIROBI SINGH GITAU AND ADVOCATES UNITY HOUSE, KOINANGE STREET P.O BOX 10070  GPO 00100 NAIROBI