Family Bank half-year net profit up 75.2 percent

Family Bank CEO Rebecca Mbithi
Family Bank CEO Rebecca Mbithi. PHOTO/COURTESY: Kenyan Wallstreet

Family bank’s net profit in the first six months of the year jumped 75.2 percent to Ksh. 638.4 million up from Ksh. 364.3 million posted in a similar period in 2019.

The performance is one of the best in an industry where Tier 1 lenders such as KCB and Co-op have already reported losses in the first half of the year. KCB for instance registered a net profit of Ksh. 7.5 billion in the first six months of the year a 40.2 percent dip from the Ksh. 12.6 billion it posted in a similar period in 2019. Co-operative bank on the other hand registered a 3.6 percent drop in net profit in the period under review.

“The Bank’s impressive performance is a testament to the resilience of our business in light of our current tough operating environment amidst the COVID-19 pandemic. Going forward, for our business outlook, we remain focused on driving a differentiated customer experience driven by a deeper understanding of our customers, automation, and digitization of our processes, of which 80% of our transactions are on the digital platform anchored on simplicity and personalized service as we continue to cushion businesses, especially the MSMEs, through the emerging pressures,” Family Bank CEO Rebecca Mbithi said in a statement.

The bank’s total operating income grew by 17.6 percent to Ksh. 4.2 billion during this period compared to Ksh. 3.6 billion last year. Non-funded income slightly decreased by 1.4 percent to Ksh. 1.3 billion. Family Bank also saw an expansion of its balance sheet in the period as its loan book grew by 17.5 percent to Ksh. 54.9 billion while customer deposits increased by 23.5 percent to Ksh. 66.7 billion. Net interest income in the period rose by 28.5 percent to Ksh. 2.9 billion from Ksh. 2.3 billion last year backed by lending and additional investments in government securities.

Total assets grew by 19.7 percent to Ksh. 86.9 billion compared to Ksh. 72.7 billion during the same period last year. Total operating expenses marginally rose by 9.8 percent to Ksh. 3.4 billion.

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