Family Bank Q1 Profits Jump 85pct to KSh297Mn

Family Bank has posted a profit before tax of Sh852.1 million for the first half of the year

Family Bank Chief Executive Officer Rebecca Mbithi

Family Bank Kenya’s net profit in the first quarter of 2020 grew 85 percent to KSh297.9 million from KSh160.83 million recorded in the first quarter of 2019.

The lender increased the net loans and advances to customers to KSh 53.0 billion, up from KSh 45.6 billion as at end of March 2019, representing an increase of KSh 7.4 billion.

The increase in loans and advances to customers positively impacted the Bank’s bottom-line, with an increase in interest income from loans and advances hitting KSh 1.7 billion during the first quarter of 2020, up from the KSh 1.4 billion that the Bank made during the same period in 2019. 

Non-interest income, including increased investment in government securities, have also impacted positively in Family Bank’s impressive performance as it stood at KSh 9.4 billion from KSh 7.2 billion in 2019. 

The Bank earned KSh 309.5 million from government securities, up 68.5 percent against Sh183.6 million that the bank made during the first three months of 2019. 

“We have been able to register profit and grow our customer deposits by 18 percent to KSh 61 billion in the first quarter of 2020. Our overall growth is attributable to our efforts to support our customers through building strong relationships, providing innovative products and strong partnerships that are aimed at enhancing customer experience,” said Family Bank CEO Rebecca Mbithi.

“With the Covid-19 pandemic, we are hopeful that measures put in place by the Central Bank of Kenya to facilitate lending and enhancing liquidity will strengthen the financial sector and in turn promote trade,” she added.

The board approved the payment of an interim dividend of Ksh0.24 per ordinary share, subject to withholding tax where applicable.