Family bank recorded a near four-fold increase in its profitability to post a pre-tax profit of Ksh. 520.9 million during the first six months of 2019.
The profit jump was achieved on the back of the bank’s increased lending and non-interest income coupled with reduced interest expenses. The lender’s net interest income however, grew by 13% to hit ksh. 2.29 billion, attributed to a 6.5% increase in its loan book to Ksh.46.7 billion as at June 2019.
In a statement, family bank’s chairman Dr. Wilfred Kiboro said increased lending especially on the bank’s digital platform dubbed PesaPap was a contributor to the bank’s growth.
“We have continued on an upward growth trajectory thanks to increased lending especially on our digital platform PesaPap. Our investment in digital banking and our deposit mobilization strategy has borne fruit as witnessed in our half-year profits,” Said Dr. Kiboro.
According to Dr. Kiboro, the bank is now shifting focus to see growth in financial technology innovations and growth in the SME by offering the value chain solutions that meet the industry.
“Our customers’ confidence and loyalty to Family Bank is witnessed in our growth. Our focus continues to be centered on growing our investment in financial
technology innovations, leveraging on strategic partnerships and offering value chain solutions that meet the needs of the ever-growing SME industry,”
The bank also recorded a 16% decrease in its interest expense which stood at Ksh.1 billion. Non-interest income also grew by 5% to Ksh.1.31 billion, driven by foreign exchange trading income and other fees and commissions.