Interest income powers Faulu’s Sh482m earnings
FINANCIALS: Microfinance lender Faulu Kenya has posted a 68 per cent increase in profit-before-tax for the financial year ended December 31, 2019, to reach Sh 482 million up from Sh287 million the previous year.
The bank, a member of Old Mutual Group, attributed the strong performance to a 20 per cent increase in interest income, improved operational efficiencies and growth of its loan book, from Sh19.18 billion in 2018 to Sh21.05 billion last year.
Operational and administrative expenses during the period declined by four per cent largely as a result of a system upgrade.
The bank’s non-performing loans ratio improved from 13.07 per cent in December 2018 to 12.1 per cent in December 2019 primarily as a result of improved underwriting and loan collection.
Total assets grew nine per cent from Sh27.2 billion to Sh29.7 billion in 2019 driven mainly by a 10 per cent growth of the loan book.
“We continue to make strategic investments in improving the overall customer experience.
A sharp focus on creating value for our customers translated into a strong performance in 2019,” said Faulu Microfinance Bank managing director Apollo Njoroge.