Family Bank Registers a 227% Earnings Growth To KES. 1.42 Billion
Family Bank has for the second year running recorded tremendous turnaround posting KES. 1.42 Billion profit before tax for Full Year 2019, posting a 227 per cent earnings growth compared to the same period in 2018.
The growth is attributed to growth in customer deposits, loans advanced to the SME market and income from non-interest sources driven by income from other fees and commissions.
By asset base, Family Bank’s balance sheet expanded by 17.8 per cent to KES. 78.9 Billion with deposits growing by 19.7 per cent, equivalent to a KES. 9.5 Billion increase supported by aggressive drive for the SME, retail, private and public sector markets. The loan book grew by 14.7 per cent in 2019 compared to 2018 standing at KES. 50.6 Billion.
“Our mobile application, PesaPap and our other digital payment platforms such as internet banking have been pivotal in the growth of the non-funded income contributing to 66 per cent of the total non-funded income. As a business, we continue to drive our strategy pegged on innovative channels and solutions that ease access to finance and capital that is critical in driving the growth of the Micro, Small and Medium Sized businesses, fueling personal growth and that of the public sector,” said Family Bank Chief Executive Officer Rebecca Mbithi.
“Innovations such as premiering the salary advance on the ATMs and leveraging on strategic partnerships such as with Water.org to provide water credit are also key contributors that we continue to incorporate in our business,” – CEO Rebecca Mbithi.
The net interest income grew by 16.3 per cent to KES. 5 Billion compared to KES. 4.3 Billion realized in the same period last year with income from loans and government securities being major contributors. Non-interest income also registered a growth of 12 per cent to hit KES. 2.8 Billion largely driven by foreign exchange trading income and fees and commissions on loans and advances compared to KES. 2.4 Billion in the same period last year. Our cost management initiatives ensured that costs were maintained at the same levels as 2018.
The bank’s liquidity remained stable at 33.1% above the minimum statutory ratio of 20%.
Family Bank pledges to continue to support the SME and Micro sector, which forms over 60% of its client base, even during this difficult time. The Bank is providing free money transfer services, free PesaLink service and free balance inquiry from a Family Bank account across all channels. Family Bank is also extending relief and extension on Personal and SME loans based on individual circumstances during this period.