Family Bank has registered a 274 per cent growth in profits before tax in the nine months to September 30, 2019 of Ksh 1.01 billion compared to Ksh 269.9 million recorded in the same period in 2018.
The lender has said higher loan uptake, steady growth in customer deposits and growth in operating income are the key drivers of this growth.
The bank’s balance sheet expanded by 14.8 per cent to Ksh 78.9 Billion with deposits growing by 26 per cent to Ksh 60.2 Billion supported by aggressive deposit mobilization for institutional, personal and transaction accounts.
Family Bank Chief Executive Officer, Rebecca Mbithi said, “Since Q3 of 2018, our earnings have been on a steady growth and we thank our customers for the continued support cemented by the growth in their uptake of our products and services. We continue to maintain a strong capital position despite the adoption of IFRS 9 Accounting Standard. We have continued to enhance the quality of our loan book capping our non-performing loans at 15.5 per cent as at September 2019.”
“Going forward, we are focused on accelerating digital innovation in our service delivery, consistent customer engagement, superior customer experience and equipping staff to better support our strategy,” she added.
The net interest margin grew by 16.7 per cent from Ksh 3.1 Billion to Ksh 3.6 Billion, attributable to a tremendous expansion of the loan book and a 12.2 per cent decrease in interest expense.
The lender’s loan book grew by Ksh 4.7 Billion to hit Ksh 49.3 Billion as at September 2019 attributed to aggressive lending to micro, small and medium-sized enterprises. Non-interest income also grew by 10.6 per cent to Ksh 2.1 Billion, driven by foreign exchange trading income and other fees and commissions.
The Bank’s liquidity has remained strong at 36.6 per cent, which above the minimum statutory ratio of 20 per cent.