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FAMILY BANK RECORDS SOLID GROWTH DESPITE LOSS IN Q3 2017

PRESS RELEASE

NAIROBI, NOVEMBER 29, 2017 – A steady growth in both customer deposits and income from increased lending in the three months of Q3 has seen Family Bank strengthen its stability despite recording a Sh748 million loss for the first nine months of 2017.

The Bank’s liquidity ratio increased by 890 BPS compared to a similar period last year to stand 33.2 per cent in the year in review. This is 1320 BPS above the Central Bank of Kenya statutory requirement of 20%. The Bank’s total capital stands at Sh11.87 billion as at the end of Q3’ 2017 while investments in government securities held to maturity went up by 67.6 percent to Sh9.37 billion compared to Sh5.59 billion in Q3’2016 financial results.

“Within the current macroeconomic reality, we are banking on our digitization and innovation strategy to deliver cost efficiency and revenue optimization. We have achieved a significant growth of our customer deposits book by Sh7 billion this year; and the adoption of self-service channels by our customers has significantly increased to over 65%,” said Family Bank MD & CEO Dr. Thuku. “Our challenging start of the year 2017 has progressively improved over the 9 months under review and the resilience of the Family Bank brand well demonstrated by the turnaround to monthly profitability from the month of September 2017, and the rest of the year looks promising,” he assured.

However, net non-performing loans increased by Sh1.2 billion largely due to the slowdown in economic activities during the prolonged electioneering period as well as the severe drought that negatively impacted a significant pool of the borrowing customers. Total net interest income dropped by 46.2 per cent for Q3’2017 compared to the net interest income received during the same quarter under review. The decline in the net interest income is as a result of the effects of the interest rate cap law, reduced lending growth and the efforts undertaken by the Bank to shore up liquidity. Staff costs also decreased to Sh 1.6 billion compared to Sh 2 billion recorded in Q3’2016.

“We are confident that our transformation program is building sustainable structures and processes that will yield long term and sustainable benefits for the business. We will continue to implement cost efficiency and revenue optimization measures that are aligned to our digitization and innovation strategy” added Dr. David Thuku.

Family Bank Q3 Financial Results Press Release Nov 29 2017