Family Bank records Sh 187.8 net profit in nine months ending Sep 30

Family Bank records Sh 187.8 net profit in nine months ending Sep 30

BY  CORRESPONDENT,NAIROBI,29TH NOV 2018-Family Bank has recorded improved performance in the 9 months period that ended on September 30  posting  Sh187.8 million net profit indicating  a turnaround from a Sh743.1 million loss registered over the similar period last year.

The management says the profit was driven by digital banking that has seen growth in credit uptake through the revamped PesaPap.

PesaPap surpassed the Sh500 million mark in loans disbursed to both its customers and non-customers within a three-month period.

According to the bank, the mobile application which was launched at
the end July 2018, recorded an average of 50,000 transactions per month
between August and November 2018.

The revamped PesaPap Wallet that also includes a savings and
investment module registered over 44,000 new users in that same period.

Net loans and advances to customers grew by Sh190.8 million to close
at Sh44.6 billion while net interest income grew by 5.5 per cent to
Sh3.1 billion compared to Sh2.9 billion in the same period under review
in 2017.

Interest from government securities also grew by 8.1 per cent to close at Sh567.9 million while
cost containment efforts resulted in a decrease in the total operating
expenses by 15.4 per cent closing the period at Sh4.7 billion.

Staff costs significantly reduced by 19.3 per cent to Sh1.3 billion compared to Sh1.6 billion recorded in September 2017.

“We continue to refine our business model to drive cost management,
lean processes and product optimization to provide value to our
customers and to our shareholders. As witnessed in our financial results
this year, the strategy continues to improve our bottom line having
consistently posted profit this year,” said Family Bank Acting Managing
Director and Chief Financial Officer Charles Njuguna.

Customer deposits marginally decreased by 0.5 per cent and stood at
Sh47.9 billion as at September 2018, while gross non-performing loans
and advances decreased by Sh6.5 million as at September 2018 compared to
same period under review in 2017.

Facebook Comments Box