Family Bank FY2020 profit up 22.4%

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Family Bank.
. PHOTO/COURTESY

Family Bank has recorded a post-tax profit of Ksh. 1.2 Billion in the full year ended 2020, a 22.4% increase from the Ksh. 949.84 million the Group posted in a similar period in 2019.

During the period under review, the lender’s total assets grew 14.9% to Ksh. 90.6 billion, with customer deposits up 20.3% to Ksh. 69.8 billion. Investments in government securities similarly increased by 65.9% to Ksh. 17 billion down from Ksh. 10.2 billion in the previous year. This boosted the Bank’s liquidity position to 37.1% which is above the minimum requirement of 20%.

“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 sectors such as manufacturing, agribusiness, trade, logistics, and technology,” said Family Bank Chief Executive Officer Rebecca Mbithi in a statement.

The Group’s net interest income grew by 28.4%, to Ksh. 6.4 billion up from Ksh. 5 billion in 2019. The Bank’s operating expenses also increased 20.2% to Ksh. 7.6 Billion down from Ksh. 6.3 billion in 2019 mainly driven by loan loss provisions which increased by more than 2.5 times from Ksh. 734 million in 2019 to Ksh. 1.62 billion in 2020.

Family Bank’s’s Total non-funded income however dropped by 4% to Ksh. 2.7 billion partially owing to the waiver on mobile transaction fees to cushion customers against the adverse effects of the coronavirus pandemic. The Group consequently recorded a decline in net non-performing loans by 11.4% to close the year at Ksh. 3.9 Billion.

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