Family Bank Profit Before Tax Soars 64pc to KSh852 Million

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Family Bank Kenya Branch in Nairobi I KHUSOKO

Family Bank Kenya has posted a profit before tax of Sh852.1 million for the first half of the year, a 63 per cent rise from a similar period last year when the bank made a net profit of Sh520.9 million.

Chief executive Rebecca Mbithi attributed the growth to increase in net interest income hugely from loans and advances and income from government securities.

During the period under review, the bank’s loan book grew by 17.5 percent to Sh54.9 billion while customer deposits rose by 23.5 percent to Sh66.7 billion. 

Net interest income in the period rose by 28.5 percent to Sh2.9 billion from Sh2.3 billion last year backed by lending and additional investments in government securities. 

Total operating income also grew by 17.6 percent to Sh4.2 billion compared to Sh3.6 billion last year, while non-funded income decreased by 1.4 percent to Sh1.3 billion.

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

“Going forward, for our business outlook, we remain focused on driving a differentiated customer experience driven by a deeper understanding of our customers, automation and digitization of our processes, of which 80% of our transactions are on the digital platform anchored on simplicity and personalized service as we continue to cushion businesses, especially the MSMEs, through the emerging pressures,” added Ms Mbithi. 

Family Bank has restructured loans worth Sh 15Billion and provisioned Sh.464M for bad debt due to Covid-19 during the first half of the year.