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Family Bank Records Kes 728.8 Million Profit in Q12021

Family Bank Group has posted a Kes 728.8 million Profit Before Tax for the first quarter of 2021, a 71.3% increase in earnings compared to the Kes 425.6 million reported during the same period in 2020.

The bank’s net interest income rose by 27.2% to KES 1.8 billion in the period ended 31st March 2021. The growth in income was attributed to the increased lending as the loan book expanded by 15.9% to Kes 61.4 billion, a growth from the Kes 8.4 billion recorded in Q12020.

Customer deposits in the bank grew by 18.3% quarter on quarter to close at Kes 72.5 billion, while total assets grew by 14.9% to Kes 94.8 billion.

Commenting on the bank’s results, Rebecca Mbithi, the group CEO, expressed optimism in the performance of the bank in 2021, saying they had put in place strategies to help them get back on track.

“We continue to execute our 2020 – 2024 strategy which positions the bank as a strong SME bank. Our strategy execution is on course, and we remain optimistic that the operating macro-economic environment will improve in the remaining part of the year. We are happy that a significant number of customers, who were affected by COVID-19 pandemic in 2020, are slowly getting back on track as we continue to support their growth,” Family Bank CEO Rebecca Mbithi.

However, loan loss provisions rose to Kes 360.1 million; the bank attributed the increase to the adverse effects of the coronavirus pandemic, which saw many of their customers take loans from the bank, which are yet to be repaid in full. The Group recorded a decline of 4.7% in net non-performing loans for the three months under review, which they said showed their clients’ resilience.

Family Bank’s core capital grew by 11% to stand at Kes 12.6 billion compared to Kes 11.4 billion recorded during the same period in 2020.

Liquidity remained significantly above the minimum requirement of 20% at 32.4%.

Read also; Family Bank Posts an 18% Jump in Profit After Tax to Kes 1.2 Billion.