Family Bank net profit down 40 per cent as bad loans bite

Family Bank MD David Thuku (right) chats with Central Bank Governor Patrick Njoroge at a recent event. Net earnings for the second-tier lender Family Bank have dropped by 40 per cent to Sh711.5 million. (PHOTO: COURTESY)

Net earnings for the second-tier lender Family Bank have dropped by 40 per cent to Sh711.5 million.

The results covering six months to June 30, 2016 show that despite its total interest income rising by 34 per cent to Sh6 billion, the lender’s profits were condemned by provision for loan losses that increased more than eight times.