FINANCIALS

Family Bank defies corona to grow half year profits by 75.2%

Non-funded income slightly decreased by 1.4 per cent to Sh 1.3 billion

In Summary
  • The bank’s total operating income however grew by 17.6 per cent to Sh4.2 billion during this period compared to Sh 3.6 billion last year.
  • Net interest income in the period rose by 28.5 per cent to Sh2.9billion from Sh2.3billion last year backed by lending and additional investments in government securities.
Family Bank CEO Rebecca Mbithi during a past event
Family Bank CEO Rebecca Mbithi during a past event
Image: COURTESY

Family Bank Group defied coronavirus to post a net profit of Sh638.5 million for the first six months of the year up from Sh364.5 million same period last year, representing 75.2 percent growth. 

Its gross profits on the other hand grew  to Sh852.1 million, up from Sh520.9 million registered in the corresponding half last year.

The growth is attributed to an increase in net interest income hugely from loans and advances and income from government securities.

 

The bank’s total operating income however grew by 17.6 per cent to Sh4.2 billion during this period compared to Sh 3.6 billion last year.

Non-funded income slightly decreased by 1.4 per cent to Sh 1.3 billion.

Family Bank saw an expansion of its balance sheet in the period as its loan book grew by 17.5 per cent to Sh54.9billion while customer deposits increased by 23.5 per cent to Sh66.7 billion.

Net interest income in the period rose by 28.5 per cent to Sh2.9billion from Sh2.3billion last year backed by lending and additional investments in government securities.

Total assets grew by 19.7 per cent to Sh86.9billion compared to Sh72.7billion during the same period last year.

Total operating expenses marginally rose by 9.8 per cent to Sh3.4billion, highlighting the cost containment measures being implemented by the Bank.

“The Bank’s performance is a testament of the resilience of our business in light of our current tough operating environment amidst the COVID-19 pandemic,” said Family Bank CEO Rebecca Mbithi.

 

During this pandemic, the bank offered relief and extension of loans to customers at no extra cost in order to cushion our customers from the adverse effects of this pandemic.

Family Bank has also restructured loans worth Sh15billion and provisioned Sh464million for the bad debt due to Covid-19 during the first half of the year.

“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,” Mbithi said.

Amended by Victor Amadala