Family Bank Posts a 18% Jump in Profit After Tax to Kes 1.2 Billion.
Family bank has posted an 18% rise in the profit after tax to Kes 1.2 billion during the financial year ended 30th December 2020, from Kes 949,836 million recorded during the same period last year. The rise in profit resulted from a rise in taxes deferred by the group as a result of the measures put earlier last year by the government to cushion the economy against the effects of the coronavirus pandemic.
The group recorded a 1.3% growth in the profit before tax to Kes 1.44 billion during the financial period ended 30th December 2020 compared to Kes 1.42 billion recorded during the same period in 2019 despite the economic hardships experienced in 2020.
Total assets in the group increased to Kes 90.66 billion, a 14% rise from the Kes 78.92 billion recorded the previous year. The group attributed the rise to the government’s tax relief, which saw the deferred tax assets increase from Kes 885,542 million in 2019 to Kes 1.55 billion during the period under review.
Investments in government securities increased by 65.9% from Kes.10.2 billion to Kes.17 billion, which boosted the bank’s liquidity position to 37.1%, significantly above the minimum requirement of 20%.
The lender recorded a 28.4 % increase in interest income from Kes 5 billion recorded during the previous year to kes 6.43 billion, with government securities increasing to Kes 1.46 billion from kes 817,790.
The Bank’s operating expenses increased by 20.2% to Kes. 7.6 billion from Kes. 6.3 billion the increase was attributed to loan loss provisions which increased by more than 2.5 times from Kes. 734 million in 2019 to Kes. 1.62 billion in 2020, a significant increase on a year-on-year basis.
Total non-funded income dropped by 4% to Ksh. 2.7 billion, which the group attributed to the waiver on mobile transaction fees, which were part of the measures put in place to cushion citizens against the adverse effects of the coronavirus pandemic.
Family Group posted an 11.8 % rise in the loan book year on year to close at Kes. 56.6 billion, which resulted from the groups’ support to its customers who saw new opportunities despite the COVID-19 pandemic.
“This support was in diverse sectors such as manufacturing, agribusiness, trade, logistics and technology,” Family Bank Chief Executive Officer Rebecca Mbithi
Family Bank Outlook
The group expressed hope in the company’s performance this year, saying they have implemented new strategies to improve their customer experience and have also joined the UN global compact.
“Looking ahead, our 2020 to 2024 strategy continues to be pegged on delivering end to end value chain propositions that begin from delivering an unmatched digital and customer experience, growing our pool of strategic partners to diversifying solutions targeted at different customers in our value chain. We are also deliberate in building a sustainable and responsible business. As such, we have joined the UN Global Compact and to which we have committed Kes. 300 Million to advance inclusive development,” Rebecca Mbithi, CEO Family Bank.
The board of directors did not recommend payment of an interim divided.