Wednesday, August 19, 2020

Family Bank Reports Sh 852.1 million Profit on Loans Amid COVID-19

    August 19, 2020   No comments

Family Bank CEO Rebecca Mbithi
Family Bank CEO Rebecca Mbithi 

Family Bank of Kenya has reported making a profit of ksh 852.1 million before tax in the first half of the year 2020 attaining a 63.6 per cent profit jump compared to same period last year. 

In the first half in 2019 the bank made a profit of only ksh 520.9 million.

The lender has attributed the huge profit jump to an increase in interest earned from loans and advances to customers and also securities to the government. 

Family Bank's loan book increased 17.5 per cent to ksh 54.9 billion while customer deposit rose by 23.5 per cent to ksh 66.7 billion.

The net interest income rose to sh 2.9 billion from sh 2.3 billion in the same period last year. Total operating income grew to sh 4.2 billion this year compared to sh 3.6 billion last year. There was however a slight 1.4 per cent decrease of non funded income to 1.3 billion. 

The total bank assets grew 19.7 percent from sh 72.7 billion in last year to sh 86.9 billion in the same period this year. Total operating expenses however rose 9.8 percent to 3.4 billion this half year. 

“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, 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,” added Ms Mbithi.

To cushion customers against the negative impact caused by the COVID-19 pandemic, Family bank has for the first half of 2020 restructured loans worth ksh 15 billion and provisioned ksh 464 million for bad debts. 

The lender also waived many transaction fees including for balance enquiry and funds transfers. 

“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 Family Bank CEO Rebecca Mbithi.

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Mwabaya Katana

About Mwabaya Katana

Mwabaya Katana is a Finance Online Researcher and Writer.He is the founder of 'Loans Kenya' Blog.

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