Family Bank has tripled its profits to 520.9 million shillings before tax in the first six months of the year 2019.
The more than three-fold growth of profits for Family Bank has been attributed to the increase in the number of customers depositing and growth of interest from higher loan uptake.
In six months, Family Bank increased its profit by 375.2 million shillings as by the same time in the year 2018, they had recorded a before-tax profit of 145.7 million shillings.
The net interest margin grew by 13 percent to hit 2.29 billion shillings, attributable to a tremendous expansion of the loan book and a 16 percent decrease in interest expense.
The loan book grew by 2.9 billion shillings to hit 46.7 billion shillings as at June 2019, while non-interest income also grew by five percent to 1.31 billion shillings, driven by foreign exchange trading income and other fees and commissions.
Family Bank’s deposit book growing by 13 percent to hit 54 billion shillings at the end of June 2019, up from 47 billion shillings reported over the same period in the year 2018.
The Bank’s liquidity remains stable at 12.9 percent, above the minimum statutory ratio of 20percent, as loan loss provision decreased by 13.5 percent in the period under review.
Family Bank’s Chairman Dr. Wilfred Kiboro, said that they have been able to scale high because of the bank’s increased lending, especially on their digital platform Pesa Pap which enables their customers to make easier and faster transactions.
“Our investment in digital banking and our deposit mobilization strategy has borne fruit as witnessed in our half-year profits,” he said.
“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 Small and Medium Enterprises (SME) industry,” he added.