Family Bank Limited has posted an 84% rise in Net Earnings to Kes 1.2 Billion for the six months period ended 30th June 2021 compared to Kes 638.5 Million posted during a similar period last year.
The lender attributed the rise to growth in interest and non-interest income as operating costs in the group reduced. This impressive performance now pushes Family Bank, a middle-tier lender, to the exclusive billionaires club.
Net interest income in the group grew by 25 per cent to Kes 3.69 billion during the six months period, backed by the growth of the loan book by 12 per cent to Kes 63.98 billion, while non-interest income, mainly related to fees and commissions, grew 18.2 per cent to Kes 1.52 billion during the six months period ended 30th June 2021.
Net loans to customers in Family Bank increased from Kes 55.9 Billion in 2020 to Kes 64.4 Billion during the period under review. While gross non-performing loans increased from Kes 9.1 Billion to Kes 10.8 at the end of H1, 2021.
Customer deposits in the group grew by 14%, defying the economic turmoil caused by the prevailing pandemic to Kes 76 Billion during the half-year period from Kes 66.7 Billion recorded at the end of June 2020.
Family bank recorded significant growth in its balance sheet from Kes 86.9 Billion in H1, 2020 to Kes 100.1 Billion at the end of 30th June this year, surpassing the Kes 100 Billion mark for the first time.
Consequently, total Shareholders Funds increased to Kes 14.5 Billion from Kes 12.9 Billion at the end of H1, 2020, raising prospects of the return of dividends for shareholders.
In June, Family Bank raised Kes 4.42 billion against a Kes3 billion target in the bond issuance with a maturity of 5.5 years.
The lender said it would use the funds to increase its branch network from the current 92 outlets in 37 counties, widening its presence and customer base as it also considers an initial public offering (IPO) proposal.
The board of directors did not recommend the payment of an interim dividend.