Family Bank records 65PC profit for the period ending 30th June 2020

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BY JOAN WANJIKU,NAIROBI,18TH AUG,2020-Family Bank has announced a 65 per cent growth in half year profit to Ksh.601.7 million from Ksh.364.4 million last year. The sharp rise in earnings is attributable to greater interest income from higher lending in the period.

The lender’s total operating income grew by 14 per cent in to Ksh.4.1 billion as net interest income surged by 26 per cent to Ksh.2.9 billion to offset a 7.7 per cent plunge in non-interest funded income (NFI) to Ksh.1.2 billion.

Family bank has increased its loan-loss provisions by 32 per cent to Ksh.451.4 million- a now industry trend forced upon by uncertainities arising from the COVID-19 pandemic on operations.

Total operating costs have subsequently picked up by 9.8 per cent to Ksh.4.5 billion.

“The bank’s impressive performance is a testament of the resilience of our business in light of our current tough operating environment amidst the COVID-19 pandemic. Going forward, for our business outlook, we remain focused on driving a differentiated customer experience driven by a deeper understanding of our customers, automation and digitization of our processes,” said Family Bank CEO Rebecca Mbithi.

The lender has seen its stock of gross non-performing loans (NPLs) rise by 11 percent to Ksh.9.1 billion from Ksh.8.2 billion last year.

The rise in earnings has seen the bank’s earning per share (EPS) improve to 47 cents in the period from a lower 30 cents.

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