Family Bank slides into Sh743 million loss

A Family Bank branch in Mombasa

Family Bank made a Sh743 million loss for the nine months to September, down from a Sh963.3 million net profit in a similar period last year.

The lender, however, climbed back from its cash liquidity problems to boost its reserves by almost nine percentage points.

In the last quarter of 2016, the lender had seen its liquidity dip below the Central Bank of Kenya’s (CBK) recommendation after a rumour caused a run on the bank, losing it Sh21 billion in just five days.

The lender’s liquidity ratio tanked at 14.4 per cent in December 2015, running afoul of CBK’s 20 per cent floor.

Family Bank has, however, now recovered to 33.2 per cent, which is 13 per cent clear of CBK’s guidelines.

The bank’s total net interest income dropped by 46.2 per cent