RESILIENCE

Family bank defies Covid-19, grows full year profit by 22.4%

Net interest income grew by 28.4 per cent

In Summary
  • The Group reported a 14.9 per cent growth in the total assets to Sh90.6billion with customer deposits registering a growth of 20.3 per cent.
  • Investments in government securities increased by 65.9 per cent from Sh10.2 billion to Sh17billion.
Family Bank along Abdel Nasser Road in Mombasa.
Family Bank along Abdel Nasser Road in Mombasa.
Image: FILE

Family Bank Group defied the coronavirus pandemic to post a net profit of Sh1.2billion for the year ended December 2020 up from Sh949million in 2019 , a 22.4 per cent growth.

The Group reported a 14.9 per cent growth in the total assets to Sh90.6billion with customer deposits growth by 20.3 per cent to Sh69.8billion during the period under review.

Investments in government securities increased by 65.9 per cent from Sh10.2 billion to Sh17billion.

This boosted the bank’s liquidity position to 37.1 per cent, significantly above the minimum requirement of 20 per cent.

Our loan book expanded by 11.8 per cent year on year to close at Sh56.6 billion as we continued to support our customers who saw new opportunities despite the Covid-19 pandemic,” said Family Bank Chief Executive Officer Rebecca Mbithi.

Net interest income grew by 28.4 per cent, a Sh1.4billion growth to Sh6.4billion compared to Sh5billion in a similar period in 2019.

The bank’s operating expenses increased by 20.2 per cent to Sh7.6billion from Sh6.3billion mainly driven by loan loss provisions which increased from Sh734million in 2019 to Sh1.62billion in 2020, a significant increase on a year-on-year basis.

Total non-funded income dropped by 4 per cent to Sh2.7billion partially owing to the waiver on mobile transaction fees to cushion our customers against the adverse effects of the coronavirus pandemic.

Looking ahead, our 2020 to 2024 strategy continues to be pegged on delivering end to end value chain propositions that begin from delivering an unmatched digital and customer experience, growing our pool of strategic partners to diversifying solutions targeted at different customers in our value chain, ” said Mbithi.

Net non-performing loans dropped by  11.4 per cent to close at Sh3.9billion.

The bank has restructured loans of over Sh16 billion as it seeks to support MSMEs during the coronavirus pandemic.