Family Bank records Sh852 million in gross profit in H1’20
Family Bank has posted a 63.6 percent increase in its gross profit in the first six months of the year to Sh852.1 million, up from Sh520.9 million registered in a similar period of 2019.
The growth is attributed to increase in net interest income hugely from loans and advances and income from government securities.
The total operating income grew by 17.6 per cent to Sh4.2 billion during this period compared to Sh3.6 billion last year. Non-funded income slightly decreased by 1.4 percent to Sh1.3 billion.
Family Bank saw an expansion of its balance sheet in the period as its loan book grew by 17.5 percent to Sh54.9 billion while customer deposits increased by 23.5 percent to Sh66.7 billion. Net interest income in the period rose by 28.5 percent to Sh2.9 billion from Sh2.3 billion last year backed by lending and additional investments in government securities.
Total assets grew by 19.7 per cent to Sh86.9 billion compared to Sh72.7 billion during the same period last year. Total operating expenses marginally rose by 9.8 per cent to Sh3.4 billion, highlighting the cost containment measures being implemented by the Bank.
“The Bank’s impressive performance is a testament of the resilience of our business in light of our current tough operating environment amidst the COVID-19 pandemic. Going forward, for our business outlook, we remain focused on driving a differentiated customer experience driven by a deeper understanding of our customers, automation and digitization of our processes, of which 80 percent of our transactions are on the digital platform anchored on simplicity and personalized service as we continue to cushion businesses, especially the MSMEs, through the emerging pressures,” added 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 restructured loans worth Sh15 billion and provisioned Sh.464M for bad debt due to Covid-19 during the first half of the year. It has also waived all charges for balance inquiries and money transfers between account and mobile money wallets.
“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. So far, we have contributed in-kind support in the form of ICU beds, ventilators, personal protective equipment, face masks, foodstuffs, among others,” said Family Bank CEO Rebecca Mbithi.