Family Bank’s Q1 Profits Up By 71.3 Percent

Family Bank Group posted 728.8 million shillings Profit Before Tax for the first quarter of 2021. This is a 71.3 percent increase in earnings compared to the 425.6 million shillings reported in Q1’2020.

Net interest income rose by 27.2 percent to 1.8 billion shillings supported by the increased lending as the loan book expanded by 15.9 percent to 61.4 billion shillings, which is an 8.4 billion shillings growth from Q1, 2020.

Customer deposits grew by 18.3 percent quarter on quarter to close at 72.5 billion shillings while total assets grew by 14.9 percent to 94.8 billion shillings.

Non-funded income marginally decreased from 714.9 million shillings to 711.2 million shillings at the back of the waiver of mobile banking charges to customers. During the same period, operating expenses marginally increased by 4.6 to 1.8 billion.

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“We continue to execute our 2020 – 2024 strategy which positions the bank as a strong SME bank. Our strategy execution is on course, and we remain optimistic that the operating macro-economic environment will improve in the remaining part of the year.  We are happy that a significant number of customers, who were affected by the COVID-19 pandemic in 2020, are slowly getting back on track as we continue to support their growth,” said Family Bank CEO Rebecca Mbithi.

Loan loss provisions rose to 360.1 million shillings to support our customers against the adverse economic effects of the pandemic. The Group recorded a decline of 4.7 percent in net non-performing loans for the three months under review showing the resilience of our clients.

The Bank’s core capital grew by 11% to stand at 12.6 billion shillings compared to 11.4 billion shillings in Q1’2020. Liquidity remained significantly above the minimum requirement of 20 percent at 32.4 percent.