BOOM

Family Bank net profit grows three-fold to Sh364 million

The half year growth was buoyed by increased customer deposits and growth in interest from higher loan uptake

In Summary

• Profits before tax also grew by more than three folds to hit Sh520.9 million in the first six months of 2019 compared to Sh145.7 million in the previews financial year

Family Bank and NMG chairman Wilfred Kiboro/FILE
Family Bank and NMG chairman Wilfred Kiboro/FILE

Family Bank more than trebled its half year profit for the period ended June 30 on the back of its digital lending platform, PesaPap.

The financial statement published in a local daily yesterday shows the lender earned a net profit Sh364.4 million during the period under review compared to Sh101.5 million same period last year.

Profits before tax also grew by more than three folds to hit Sh520.9 million in the first six months of 2019 compared to Sh145.7 million in the previews financial year.

“We have continued on an upward growth trajectory thanks to increased lending especially on our digital platform PesaPap. Our investment in digital banking and our deposit mobilization strategy has borne fruit as witnessed in our half-year profits,” said Family Bank chairman Wilfred Kiboro said.

He said that the bank’s focus continues to be centered on growing our investment in financial technology innovations, leveraging on strategic partnerships and offering value chain solutions that meet the needs of the ever-growing SME industry.

Kiboro added that the half year growth was buoyed by increased customer deposits and growth in interest from higher loan uptake.

The lender’s net interest margin grew by 13 per cent to hit Sh 2.29 billion, attributable to a tremendous expansion of the loan book and a 16 per cent decrease in interest expense.

The loan book on the other hand grew by Sh 2.9 billion to hit Sh46.7 billion . Non-interest income also grew by five per cent to Sh1.31 billion, driven by foreign exchange trading income and other fees and commissions.

The bank’s liquidity remains stable at 12.9 per cent above the minimum statutory ratio of 20per cent. Loan loss provision decreased by 13.5 per cent in the period under review.

Family Bank’s total assets grew slightly to Sh72.6 billion by June 30 from Sh69.1 billion.