Family Bank Group registers Ksh.1.4B in profit for 2020
Published on: March 30, 2021 11:09 (EAT)
Family Bank posted Ksh. 1.440billion profit before tax for the group for the full year 2020 against Ksh. 1.422billion in 2019. A statement from the bank said this is a 1.3% growth which demonstrates resilience amidst a challenging operating environment. “Our loan book expanded by 11.8% year on year to close at Ksh. 56.6 billion as 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 Officer Rebecca Mbithi said on Tuesday. The Group reported a 14.9% growth in the total assets to Ksh. 90.6billion with customer deposits registering a growth of 20.3% to Ksh. 9.8billion for the period under review. Investments in government securities increased by 65.9% from Ksh. 10.2billion to Ksh. 17billion. This boosted the bank’s liquidity position to 37.1%, significantly above the minimum requirement of 20%. Net interest income grew by 28.4%, a Ksh. 1.4billion growth to Ksh. 6.4billion compared to Ksh. 5billion in a similar period in 2019. The Bank’s operating expenses increased by 20.2% to Ksh. 7.6billion from Ksh. 6.3 Billion mainly driven by loan loss provisions which increased by more than 2.5 times from Ksh. 734million in 2019 to Ksh. 1.62billion in 2020, a significant increase on a year-on-year basis. Total non-funded income dropped by 4% to Ksh. 2.7 Billion partially owing to the waiver on mobile transaction fees to cushion our customers against the adverse effects of the coronavirus pandemic. “Looking ahead, our 2020 to 2024 strategy continues to be pegged on delivering end to end value chain propositions that begin from delivering an unmatched digital and customer experience, growing our pool of strategic partners to diversifying solutions targeted at different customers in our value chain. We are also deliberate in building a sustainable and responsible business. As such, we have joined the UN Global Compact and to which we have committed Ksh. 300 Million to advance inclusive development,” added Ms. Mbithi. The Group recorded a decline in net non-performing loans of 11.4% to close at Ksh. 3.9 Billion. Profit After Tax for the full year in review was at Ksh. 1.2 Billion, 22.4% earnings in growth compared to the same period in 2019. The Bank has restructured loans of over Ksh. 16 billion as it seeks to support MSMEs during the coronavirus pandemic.