Tier II lender Family Bank has posted a Ksh. 704.6 million profit in the first nine months of the year eclipsing the Ksh. 244.2 million profit the bank registered in the full year ended December 2018.
The bank’s net interest increased to Ksh. 5.18 billion during the period while customer deposits grew by 26 percent to Ksh. 60.2 billion. The bank’s net loans and credit advances grew by 11 percent to Ksh. 49.3 billion while non-interest income also grew by 11 percent to Ksh. 2.05 billion in the first nine months of the year.
The bank has attributed the significant jump in profits to a decrease in operational costs supported by increased interest and non-interest income. Increased lending to small and medium enterprises as well as aggressive deposit taking likewise contributed to the jump in the bank’s earnings.
“We have witnessed tremendous growth in all parameters. We maintained aggressive lending to micro, small and medium enterprises despite the rate cap, helping us to grow income while increasing quality of loan book,” Family Bank Chief Executive Rebecca Mbithi said in a statement.
The bank correspondingly attributed its positive performance in the period under review to the success of its mobile money platform Pesa Pap. The application has rolled out Ksh. 1.5 billion in loans ever since its launch in January 2018.
“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 mobilisation strategy has borne fruit as witnessed in our half-year profits. ,” Family Bank Chairman Wilfred Kiboro said in an official statement.
With the positive performance in the year’s first nine months it is estimated that the bank will register a pre-tax profit of between Ksh.1.4 billion and Ksh.1.5 billion for the full year. The last time the bank posted a net profit over Ksh. 1 billion was in 2015 after registering a Ksh. 1.98 billion net profit.