Family Bank Posts 227% Growth In Earnings To Ksh 1.42 Billion

By Soko Directory Team / March 27, 2020 | 9:06 am




Family Bank posted 1.42 billion shillings in profit before tax for Full Year 2019, a 227 percent earnings growth compared to the same period in 2018.

The growth is attributed to growth in customer deposits, loans advanced to the SME market and income from non-interest sources driven by income from other fees and commissions.

By asset base, Family Bank’s balance sheet expanded by 17.8 percent to 78.9 billion shillings with deposits growing by 19.7 percent, equivalent to a 9.5 billion shillings increase supported by the aggressive drive for the SME, retail, private and public sector markets. The loan book grew by 14.7 percent in 2019 compared to 2018 standing at 50.6 billion shillings.

“Our mobile application, PesaPap and our other digital payment platforms such as internet banking have been pivotal in the growth of the non-funded income contributing to 66 percent of the total non-funded income. As a business, we continue to drive our strategy pegged on innovative channels and solutions that ease access to finance and capital that is critical in driving the growth of the Micro, Small and Medium-sized businesses, fueling personal growth and that of the public sector,” said Family Bank Chief Executive Officer Rebecca Mbithi.

 “Innovations such as premiering the salary advance on the ATMs and leveraging on strategic partnerships such as with Water.org to provide water credit are also key contributors that we continue to incorporate in our business,” she added.

The net interest income grew by 16.3 percent to Sh 5 billion compared to Sh 4.3 Billion realized in the same period last year with income from loans and government securities being major contributors. Non-interest income also registered a growth of 12 percent to hit Sh 2.8 billion largely driven by foreign exchange trading income and fees and commissions on loans and advances compared to Sh 2.4 Billion in the same period last year. Our cost management initiatives ensured that costs were maintained at the same levels as 2018.

The bank’s liquidity remained stable at 33.1% above the minimum statutory ratio of 20 percent.

Family Bank pledges to continue to support the SME and Micro sector, which forms over 60 percent of its client base, even during this difficult time. The Bank is providing free money transfer services, free PesaLink service and free balance inquiry from a Family Bank account across all channels. Family Bank is also extending relief and extension on Personal and SME loans based on individual circumstances during this period.

READ: Absa Bank Kenya Gave Ksh 20 Billion In Loans Through Timiza





About Soko Directory Team

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system.Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

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