Family Bank profit up 288 per cent to Sh949 million

Family Bank registered a net profit of Sh949.8 million for the year ended December 31, 2019.

This was a growth of 288 per cent in net profit from the Sh244.2 million recorded in 2018.

The bank attributed the growth to rise in customer deposits, loans advanced to the SME market and income from non-interest sources such as fees and commissions.

Interest income jumped by half-a-billion over the year, buoyed by a tremendous growth in interests levied on loans and advances.

In the same period, non-interest income increased marginally, up from Sh2.5 billion to Sh2.8 billion. The bank cut on its total operating expenses by over Sh20 million on the back of a marginal reduction on loan loss provision.

Family Bank’s asset base expanded by 17.8 per cent, from Sh67 billion to Sh78.9 billion, with deposits growing by 19.7 per cent, representing a Sh9.5 billion rise.

The bank said the growth was supported by aggressive drive for the SME, retail, private and public sector markets. The loan book grew by 14.7 per cent in 2019, standing at Sh50.6 billion from Sh44.1 billion in 2018.

“Our mobile application, PesaPap and our other digital payment platforms such as internet banking have been pivotal in the growth of the non-funded income contributing to 66 per cent of the total non-funded income,” said Family Bank Chief Executive Officer Rebecca Mbithi.

“As a business, we continue to drive our strategy pegged on innovative channels and solutions that ease access to finance and capital that is critical in driving the growth of the Micro, Small and Medium-sized businesses, fueling personal growth and that of the public sector.”