Family Bank Posts Ksh.2.5 Billion Nine Months Profit

 

Family CEO Rebecca Mbithi

By Kepha Muiruri

Family Bank has posted a 39 per cent growth in earnings through nine months to September with profit at Ksh.2.5 billion from Ksh.1.8 billion previously.

The bank’s profitability is attributable largely to higher income in the period which rose by 12.5 per cent to Ksh.9 billion.

This as non-interest funded income grew by 21.7 per cent to Ksh.2.8 billion while net-interest income was higher by 10.5 per cent at Ksh.6.3 billion.

Growth in interest income was backed by a 22.7 per cent loan book expansion to Ksh.79.9 billion from Ksh.65.1 billion previously.

Family Bank has kept its costs base low in the period with total operating expenses rising by just 3.8 per cent to Ksh.5.5 billion from Ksh.5.3 billion.

This with support from a 42.1 per cent decline in loan-loss provisioning costs to Ksh.469.6 million from Ksh.811.3 million.

During the period, Family Bank saw its customer deposits grow 13.7 per cent to Ksh.92.7 billion from Ksh.81.5 billion.

Family Bank CEO Rebecca Mbithi expects the bank’s strong funding base to keep the lender on a growth trajectory.

“As a bank, we continue to create a healthy operating environment that provides consistent growth and profitability to our customers as we build a sustainable business that goes beyond profit,” she said.