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HomeEconomyCorporateFamily Bank records a 1.3% growth in pre-tax profit to Ksh.1.44 billion

Family Bank records a 1.3% growth in pre-tax profit to Ksh.1.44 billion

Family Bank records a 1.3% growth in pre-tax profit to Ksh.1.44 billion

Family Bank posted a 1.3 percent growth in its profit before tax for the full year ended December 2020 to Ksh.1.440 billion compared to Ksh.1.422 billion in the previous year.

A statement from the bank attributed the growth lender’s resilience amidst a challenging operating environment.

“Our loan book expanded by 11.8% year on year to close at Ksh. 56.6 billion as we continued to support our 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 said on Tuesday.

The lender reported a 14.9 percent growth in the total assets to Ksh.90.6 billion with customer deposits registering a growth of 20.3 percent to Ksh.9.8billion.

Investments in government securities increased by 65.9 percent from Ksh. 10.2 billion to Ksh.17 billion.

This boosted the bank’s liquidity position to 37.1 percent significantly above the minimum requirement of 20%.

Net interest income grew by 28.4 percent a Ksh.1.4billion growth to Ksh.6.4billion compared to Ksh.5 billion in a similar period in 2019.

The Bank’s operating expenses increased by 20.2 percent to Ksh.7.6billion from Ksh.6.3 billion mainly driven by loan loss provisions.

Loan [provisions increased by more than 2.5 times from Ksh.734 million in 2019 to Ksh. 1.62billion in 2020, a significant increase on a year-on-year basis.

Total non-funded income dropped by 4 percent to Ksh.2.7 billion owing to the waiver on mobile transaction fees to cushion lender’s customers against the adverse effects of the coronavirus pandemic.

“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 Ksh. 300 Million to advance inclusive development,” added Ms. Mbithi.

Family Bank has so far restructured loans of over Ksh.16 billion as it seeks to support MSMEs during the coronavirus pandemic.

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Lawrence Baraza is a prolific writer with competencies in Digital Media, Print, and Broadcast. Baraza is also a Communication Practitioner currently spearheading Digital content on Metropol TV's Digital Desk.

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