Family Bank records KSH 852.1 million profit before tax in the first half of 2020
Family Bank has recorded a 63.6 percent increase in its profit before tax for the first six months of the year 2020. A Kenya Shillings 852.1 million profit up from Sh 520.9 million registered in a similar period of 2019. This is according to the statement issued by the bank on 18th August 2020. The lender attributed the growth in earnings to higher net interest income, hugely from loans, advances, and income from government securities.
The total operating income grew by 17.6 percent to Sh 4.2 billion during the period compared to last year’s Sh 3.6 billion. Non-funded income slightly decreased by 1.4 percent to Sh 1.3 billion. The bank’s CEO Ms. Mbithi while commenting, said that the Bank will continue to drive digital transactions through automation and digitization of critical processes within the bank to provide convenient banking solutions, especially during the COVID-19 pandemic. She said Family Bank has migrated over 80% of its transactions to digital.
“The Bank’s impressive performance is a testament of resilience for 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,” Ms. Rebecca Mbithi, the Group’s CEO commented during the announcing of the results yesterday.
Family Bank’s loan book grew by 17.5 percent to Sh 54.9 billion while customer deposits increased by 23.5 percent to Sh 66.7 billion. The net interest income for the period rose by 28.5 percent to Sh 2.9 billion from Sh 2.3 billion posted last year backed by lending and additional investments in government securities.
Total assets grew by 19.7 percent to Sh 86.9 billion compared to Sh 72.7 billion during the same period last year. Total operating expenses marginally rose by 9.8 percent to Sh 3.4 billion, highlighting the cost containment measures being implemented by the Bank.
The Bank has offered relief and extension of loans to customers at no extra cost in order to cushion its customers from the adverse economic effects posed by the coronavirus. Family Bank has restructured loans worth Kenya Shillings 15 billion and provisioned Sh.464 million for bad debt brought about by the global health pandemic during the first half of the year. It has also waived all charges for balance inquiries and money transfers between account and mobile money wallets as directed by the Central Bank of Kenya.
“We recognize that the COVID-19 pandemic has resulted in difficult operating environments. As a result, as part of our strategy to build a sustainable business, the bank continues to work with the County Governments to assist vulnerable groups affected by the pandemic. So far, we have contributed in-kind support in the form of ICU beds, ventilators, personal protective equipment, face masks, foodstuffs, among others,” said Ms. Mbithi.
Rebecca Mbithi said the bank will continue to make strategic partnerships and customized innovative solutions focused on cost containment and encouraging the use of alternative banking solutions to meet customers’ needs during the period and to further drive the bank’s performance in the financial year, 2020.