Family Bank Group posted six per cent growth in net profit to Sh949 million for the year ended December 2019 compared Sh895 million in 2018.
This is attributed to growth in customer deposits, loans advanced to SMEs and income from non-interest sources, and driven by income from fees and commissions.
By asset base, Family Bank’s balance sheet expanded by 17.8 per cent to Sh78.9 billion, with deposits growing by 19.7 per cent supported by an aggressive drive for the SME, retail, private and public sector markets.
The loan book grew by 14.7 per cent in 2019 to stand at Sh50.6 billion.
“Our mobile application, PesaPap and our other digital payment platforms such as internet banking have been pivotal in the growth of the non-funded income contributing to 66 per cent of the total non-funded income,” said Family Bank chief executive officer Rebecca Mbithi.
The net interest income grew by 16.3 per cent to Sh5 billion compared to Sh4.3 billion in the same period last year, with income from loans and government securities being major contributors.
Non-interest income also registered a growth of 12 per cent to hit Sh2.8 billion largely driven by foreign exchange trading income and fees and commissions on loans and advances compared to Sh2.4 billion in the same period last year.
The bank’s liquidity remained stable at 33.1 per cent above the minimum statutory ratio of 20 per cent.
Family Bank pledged to continue supporting the SMEs and micro sector, which form more than 60 per cent of its client base, even during this difficult time.
The bank is providing free money transfer services, free PesaLink service and free balance inquiry across all channels.
Edited by Josephine M. Mayuya
