Family Bank quarterly profit rises to Ksh.510 million

Family Bank quarterly profit rises to Ksh.510 million

Family Bank has posted a 71.3 per cent growth in quarterly earnings across three months to March with profits rising to Ksh.510.2 million from Ksh.297.9 million last year.

The elevated performance for the tier two lender has been anchored on improved income streams which grew ahead of operating expenses in the period.

Family Bank for instance booked a 19 per cent growth in operating income with interest earnings having risen by 20 per cent to Ksh.2.4 billion.

The bank’s non-interest funded income (NFI) nevertheless remained relatively unchanged from last year at Ksh.711.2 million.

Combined, the income stream easily beat a 5.9 per cent spike in total operating expenses to Ksh.1.8 billion.

The rise in the expense base was largely attributed to increased loan-loss provision costs which rose to Ksh.360.1 million from a lower Ksh.277.7 million last year.

The rise in provisions for potential bad loans was as the lender’s stock of gross non-performing loans (NPLs) soared by 15.6 per cent to Ksh.10.4 billion.

At the close of the period, Family bank asset base continued to trend towards the Ksh.100 billion mark growing by 14.9 per cent on a year over year basis to Ksh.94.8 billion.

The asset base includes Ksh.61.4 billion in net loans and advances to customers.

Family Bank Chief Executive Officer Rebecca Mbithi says the improved performance for the bank has strong backing from the lender’s new strategy direction.

“We continue to execute our 2020 – 2024 strategy which positions the bank as a strong SME bank. Our strategy execution is on course, and we remain optimistic that the operating macro-economic environment will improve in the remaining part of the year. We are happy that a significant number of customers, who were affected by COVID-19 pandemic in 2020, are slowly getting back on track as we continue to support their growth,” she said.

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