Family Bank posts 274pc growth in after-tax profit
Increased credit uptake, growth in customer deposits and in operating income contributed to Family Bank’s net profit of Sh705 million—which was a 274 per cent growth in third quarter of this year compared to what was recorded in a similar period in 2018.
The group recorded a profit before tax of Sh1.01 billion during the third quarter of the year which was equivalent to a growth of Sh738.2 million compared to Sh269.9 million posted in a similar period in 2018.
Speaking yesterday during an investors briefings, Family Bank chief executive Rebecca Mbithi, said net interest margin for the bank grew by 16.7 per cent from Sh3.1 billion to Sh3.6 billion, attributable to a tremendous expansion of their loan book and a 12.2 per cent decrease in interest expense.
She said the loan book grew by Sh4.7 billion to Sh49.3 billion as at September 2019 attributed to aggressive lending to micro, small and medium-sized enterprises.
Non-interest income also grew by 10.6 per cent to Sh 2.1 billion, driven by foreign exchange trading income and other fees and commissions.
“We have continued to enhance the quality of our loan book, capping our non-performing loans at 15.5 per cent as at September 2019,” said Mbithi, adding that: “Going forward, we are focused on accelerating digital innovation in service delivery.”
