Family Bank has more than tripled the half-year profits to post Sh520.9 million profit before tax in the first six months of 2019.
The growth was attributed to 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 Sh145.7 million.
The net interest margin grew by 13 per cent to hit Sh2.29 billion, attributable to a tremendous expansion of the loan book and a 16 per cent decrease in interest expense. The loan book grew by Sh2.9 billion to hit Sh46.7 billion as at June 2019. Non-interest income also grew by 5 per cent to Sh1.31 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 per cent to hit Sh54 billion at the end of June 2019, up from Sh47 billion reported over the same period in 2018. The Bank’s liquidity remains stable at 12.9 per cent above the minimum statutory ratio of 20 per cent. Loan loss provision decreased by 13.5 per cent 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.