Family Bank half-year profit up 75pc

Family Bank half-year profit up 75pc
Family Bank CEO Rebecca Mbithi speaking at the lender's quarter 3 investor briefing on November 25 PHOTO | COURTESY

Family Bank has announced a 75 per cent growth in half year profit to Ksh.638.5 million from Ksh.364.4 million last year.

The sharp rise in earnings is attributable to greater interest income from higher lending in the period.

The lender’s total operating income grew by 16.7 per cent in to Ksh.4.2 billion as net interest income surged by 26 per cent to Ksh.2.9 billion to offset a non-change in non-interest funded income (NFI) to Ksh.1.3 billion.

Family bank has increased its loan-loss provisions by 32 per cent to Ksh.451.4 million- a now industry trend forced upon by uncertainities arising from the COVID-19 pandemic on operations.

Total operating costs have subsequently picked up by 12 per cent to Ksh.4.6 billion.

“The bank’s impressive performance is a testament of 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,” said Family Bank CEO Rebecca Mbithi.

The lender has seen its stock of gross non-performing loans (NPLs) rise by 12,2 percent to Ksh.921 billion from Ksh.8.2 billion last year.

The rise in earnings has seen the bank’s earning per share (EPS) improve to 47 cents in the period from a lower 30 cents.

The bank says it has restructured loans totalling to Ksh.15 billion in the period.

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Story By Kepha Muiruri
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