Family Bank Posts 22% Rise in FY20 Net Profit on Higher Interest Earnings

FAMILY BANK GETS CMA NOD TO RAISE KES 8 BILLION TO ANCHOR ITS GROWTH STRATEGY

Family Bank Chief Executive Officer Rebecca Mbithi

Family Bank Kenya Tuesday reported a 22 per cent increase in net profit to KSh1.16 billion from KSh949.84 million a year earlier for the full-year to December 2020 on account of increased interest earnings. 

Net interest income grew by 28.4 per cent, a Ksh 1.4 Billion growth to Ksh 6.4 Billion compared to Ksh 5 Billion in a similar period in 2019. 

The Bank’s operating expenses increased by 20.2% to Ksh 7.6 Billion from Ksh 6.3 Billion mainly driven by loan loss provisions which increased by more than 2.5 times from Ksh 734 Million in 2019 to Ksh 1.62 Billion in 2020, a significant increase on a year-on-year basis. 

Total non-funded income dropped by 4% to Ksh 2.7 Billion.

“We continued to support our customers who saw new opportunities despite the Covid-19 pandemic. This support was in diverse sectors such as manufacturing, agribusiness, trade, logistics and technology,” Family Bank chief executive Rebecca Mbithi said in a statement on Tuesday.

The Group recorded a decline in net non-performing loans of 11.4% to close at Ksh 3.9 Billion.