Family Bank has more than trebled the Half-Year profits posting KES 520.9 Million Profit Before Tax in the first six months of 2019. The growth is buoyed by increased customer deposits and growth in interest from higher loan uptake.
The profit is a remarkable increase compared to the same period in 2018 when the Bank registered a Profit Before Tax of KES 145.7 Million.
The net interest margin grew by 13% to hit KES 2.29 Billion, attributable to a tremendous expansion of the loan book and a 16% decrease in interest expense. The loan book grew by KES 2.9 Billion to hit KES 46.7 Billion as at June 2019. Non-interest income also grew by 5% to KES 1.31 Billion, driven by foreign exchange trading income and other fees and commissions.
Key balance sheet figures have also registered impressive growth with the Bank’s deposit book growing by 13% to hit KES 54 Billion at the end of June 2019, up from KES 47 Billion reported over the same period in 2018. The Bank’s liquidity remains stable at 12.9% above the minimum statutory ratio of 20%. Loan loss provision decreased by 13.5% in the period under review.
“We have continued on an upward growth trajectory thanks to increased lending especially on our digital platform PesaPap. Our investment in digital banking and our deposit mobilization strategy has borne fruit as witnessed in our half-year profits,” said Family Bank’s Chairman Dr. Wilfred Kiboro. “Our customers’ confidence and loyalty to Family Bank is witnessed in our growth. Our focus continues to be centered on growing our investment in financial technology innovations, leveraging on strategic partnerships and offering value chain solutions that meet the needs of the ever-growing SME industry,” he added.