•The bank extended a total Sh49.3 billion to customers as loans and advances.
•The Group’s customer deposits grew to Sh60.2 billion compared to Sh47.9 billion last year.
Family Bank more than tripled its profit for the nine months to September on the back of growth in non-interest income and gains from loans and advances.
The lender announced on Monday its profit after tax closed the period at Sh704.7 million compared to Sh187.8 million same period last year.
Higher loan uptake, steady growth in customer deposits and growth in operating income were the key drivers of the bank’s profitability, management has said.
During the period, the lender extended a total of Sh49.3 billion to customers as loans and advances, an increase compared to Sh44.6 billion in the same period last year.
This saw the bank reap Sh4.4 billion on interest from its loan book during the period, higher than the Sh4.2 billion it got in 2018.
“Since Q3 of 2018, our earnings have been on steady growth and we thank our customers for the continued support cemented by the growth in their uptake of our products and services. We continue to maintain a strong capital position despite the adoption of IFRS 9 Accounting Standard,” Family Bank CEO Rebecca Mbithi said.
“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. Going forward, we are focused on accelerating digital innovation in our service delivery, consistent customer engagement, superior customer experience and equipping staff to better support our strategy,” Mbithi added.
The Group’s customer deposits grew to close at Sh60.2 billion compared to Sh47.9 billion last year.
By asset base, Family Bank’s balance sheet expanded by 14.8 per cent to Sh78.9.
The net interest margin grew by 16.7 per cent from Sh3.1 billion to Sh3.6 billion, attributable to a tremendous expansion of the loan book and a 12.2 per cent decrease in interest expense.
Non-interest income grew by 10.6 per cent to Sh2.1 billion from Sh1.8 billion, driven by foreign exchange trading income and other fees and commissions, the lenders’ financials show.
The Bank’s liquidity has remained strong at 36.6 per cent, which is above the minimum statutory ratio of 20 per cent.