Family Bank Registers Pre-tax Profit of Sh 1.01 Billion
Leading lender Family Bank has recorded a Sh1.01 billion profit before tax in the nine months of 2019, registering a remarkable 274% growth in earnings compared to the same period in 2018.
Higher loan uptake, steady growth in customer deposits and growth in operating income are the key drivers of the bank’s profitability and the same continue on an upward trajectory.
The performance, covering the period up to end of September 2019, is an improvement from the Sh269.9 million posted in a similar period last year. By asset base, Family Bank’s balance sheet expanded by 14.8 per cent to Sh 78.9 billion with deposits growing by 26 per cent to Sh 60.2 billion supported by aggressive deposit mobilization for institutional, personal and transaction accounts.
“Since Q3 of 2018, our earnings have been on steady growth and we thank our customers for the continued support cemented by the growth in their uptake of our products and services. 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 per cent as at September 2019,”
said Family Bank Chief Executive Officer Rebecca Mbithi.
“Going forward, 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.”
The net interest margin grew by 16.7 per cent from Sh 3.1 billion to Sh 3.6 billion, attributable to a tremendous expansion of the loan book and a 12.2 per cent decrease in interest expense. The loan book grew by Sh4.7 billion to hit Sh 49.3 billion as at September 2019 attributed to aggressive lending to micro, small and medium-sized enterprises. Non-interest income also grew by 10.6 per cent 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 per cent, which above the minimum statutory ratio of 20 per cent.
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