Family Bank’s Half Year Profit Before Tax up 63.6% in 1H20
Family Bank has posted a 63.6 per cent increase in its profit before tax for the Group through the first six months of the year to Kes 852.1 million, up from Kes 520.9 million registered in a similar period of 2019.
The growth is attributed to increase in net interest income hugely from loans and advances and income from government securities.
The total operating income grew by 17.6 per cent to Kes 4.2 billion during this period compared to Kes 3.6 billion last year.
Net interest income in the period rose by 28.5 per cent to Sh 2.9 billion from Sh 2.3 billion last year backed by lending and additional investments in government securities.
Total assets grew by 19.7 per cent to Kes 86.9 billion compared to Kes 72.7 billion during the same period last year.
Non-funded income slightly decreased by 1.4 per cent to Kes 1.3 billion. Family Bank saw an expansion of its balance sheet in the period as its loan book grew by 17.5 per cent to Kes 54.9 billion while customer deposits increased by 23.5 per cent to Kes 66.7 billion.
Total operating expenses marginally rose by 9.8 per cent to Kes 3.4 billion, highlighting the cost containment measures being implemented by the Bank.
“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, of which 80% of our transactions are on the digital platform anchored on simplicity and personalized service as we continue to cushion businesses, especially the MSMEs, through the emerging pressures,” added Ms Mbithi.
During this pandemic, the Bank offered relief and extension of loans to customers at no extra cost in order to cushion our customers from the adverse effects of this pandemic.
Family Bank has restructured loans worth Kes.15 Billion and provisioned Kes.464M for bad debt due to COVID-19 during the first half of the year.
It has also waived all charges for balance inquiries and money transfers between account and mobile money wallets.
“We recognize that the COVID-19 pandemic has resulted in difficult operating environments. As a result, as part of our strategy to build a sustainable business, the Bank continues to work with the County Governments to assist vulnerable groups affected by the pandemic. So far, we have contributed in-kind support in the form of ICU beds, ventilators, personal protective equipment, face masks, foodstuffs, among others,” said Family Bank CEO Rebecca Mbithi.