Family Bank posts Sh949.8m in net earnings
Family Bank has posted net profit of Sh949.8 million for the period ended December 31, 2019, a 6 per cent rise from Sh895.95 million recorded in a similar period in 2018.
The bank attributed the performance to the growth in customer deposits, loans advanced to small and medium enterprises (SMEs) and income from non-interest sources.
Profit before tax stood at Sh1.42 billion, which was a to 227 per cent rise the period ended December 31, 2019, compared to Sh1.35 billion it reported in December 31, 2018.
Chief executive officer Rebecca Mbithi said the bank's mobile application, PesaPap and other digital payment platforms such as internet banking was pivotal in the growth of the non-funded income, thereby contributing to 66 per cent of the total non-funded income.
She said net interest income for the period under review grew by 16.3 per cent to Sh5 billion compared to Sh4.3 billion realised in the same period last year with income from loans and government securities being major contributors.
The non-interest income also registered a growth of 12 per cent to hit Sh2.8 billion, largely driven by foreign exchange trading income and fees and commissions on loans and advances compared to Sh2.4 billion in the same period last year.
She said the bank’s cost management initiatives ensured that costs were maintained at the same levels as 2018.
“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, fuelling personal growth and that of the public sector,” Mbithi said.
She said innovations such as premiering the salary advance on the ATMs and leveraging strategic partnerships such as with Water.org to provide water credit are also key contributors that the bank continue to incorporate in our business.
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.