Family Bank Boasts 345 Percent Profit Before Tax in Q1 2019

Family Bank has registered a 345 percent jump in its Profit Before Tax (PBT) in the first quarter of 2019 according to results published on May 27.

The Bank declared a profit before tax of 230 million shillings in the quarter, compared to 51 million shillings recorded in the same period last year.

Family Bank’s net interest margin grew 14 percent to hit 1.14 billion shillings as a result of higher interest income from the accelerated lending activity.

Non-interest income also grew 10 percent to 652 million, mainly from fees and commissions driven by increased usage of the Bank’s digital channels.

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Key balance sheet figures have also registered impressive growth with the Banks deposit book growing 11 percent to hit 52 billion shillings at the end of March 2019, up from 47 billion shillings reported over the same period in 2018.

The loan book also grew by 1.4 billion shillings to hit 45.6 billion shillings as at March 2019.

According to the Bank’s Chairman, Dr. Wilfred Kiboro, the performance is a testament to the renewed confidence from the Bank’s customers and is also a direct outcome of the Bank’s innovation-driven strategy, and of the operational efficiencies derived from ongoing product and process automation programs.

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“Our customers have shown us great loyalty and renewed confidence. We are optimistic about our prospects for 2019 and beyond. We have put in place a customer-centered strategy, pegged on innovation leveraging on technology, promotion of business-to-business (B2B) solutions for SMEs and a renewed focus on specific value chains,” Kiboro said.

He also added that Family Bank will continue to invest in its digital channels to deliver an even more enhanced mobile and online banking experience.

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“We are very proud that our Bank has been nominated for the prestigious African Banker Awards for innovation in June 2019. We are indeed on the right path,” he added.

The positive story of the Bank’s first quarter performance affirms Family Bank’s full turnaround from loss-making territory in 2017.