Family Bank Profits To September Rise By 64pc To Ksh.1.8 Billion

 

By Kepha Muiruri For Citizen Digital

Tier II lender Family Bank has posted a 63.6 per cent jump in profitability through the first nine months of the year to Ksh.1.8 billion from Ksh.1.1 billion previously.

The growth in profitability is attributable to rising net interest income which hit Ksh.5.7 billion in the period from Ksh.4.6 billion.

The interest income growth rate was higher than the rise in non-interest income which stood at Ksh.2.3 billion in contrast to a flat Ksh.2 billion last year.

Family Bank’s total operating expenses rose slightly to Ksh.5.3 billion from Ksh.5.1 billion as its loan-loss provisioning costs went down by just Ksh.54.8 million in the period.

Subsequent to the profit rise, Family Bank earnings per share have reached Ksh.1.34 from Ksh.87 cents.

The lender’s management has attributed the performance to its concentration on lending to small and micro-businesses.

“We continue to support micro, small and medium-sized enterprises as the economy slowly steadies with the containment of the effects of the pandemic. Our promise to our customers is that we will continue supporting them,” said Family Bank Chief Executive Officer Rebecca Mbithi.

Family Bank has seen its customer deposits grow to Ksh.81.5 billion from Ksh.69.4 billion.

This is while the lender’s assets top Ksh.107.2 billion to include Ksh.65.1 billion in net loans and advances to customers.