Family Bank posts Sh1.01bn profit in 9 months

Family Bank posts Sh1.01bn profit in 9 months

November 25, 2019 0 By mykenyancareers

FAMILY BANK - Family Bank posts Sh1.01bn profit in 9 months

The growth has been attributed to high loans, increased customer deposits, and growth in operating income/FILE

NAIROBI, Kenya, Nov 25Family Bank has recorded an Sh1.01 billion profit before tax in the nine months of 2019, from the Sh269.9 million posted in the same period in 2018.

The loan book grew by Sh4.7 billion to hit Sh49.3 billion as at September 2019 attributed to aggressive lending to micro, small and medium-sized enterprises.

The lender’s balance sheet expanded by 14.8 percent to Sh78.9 billion with deposits growing by 26 percent to Sh60.2 billion supported by aggressive deposit mobilization for institutional, personal and transaction accounts.

Family Bank Chief Executive Officer Rebecca Mbithi said the bank is focused on also growing digitally.

“We continue to maintain a strong capital position despite the adoption of IFRS 9 Accounting Standard, We have continued to enhance the quality of our loan book capping our non-performing loans at 15.5 percent as at September 2019 and we are focused on accelerating digital innovation in our service delivery, consistent customer engagement, superior customer experience and equipping staff to better support our strategy,” said Mbithi.

The net interest margin grew by 16.7 percent from Sh 3.1 billion to Sh 3.6 billion, attributable to a tremendous expansion of the loan book and a 12.2 percent decrease in interest expense.

Non-interest income also grew by 10.6 percent to Sh 2.1 billion, driven by foreign exchange trading income and other fees and commissions.

The Bank’s liquidity has remained strong at 36.6 percent, which above the minimum statutory ratio of 20 percent.