Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

Finance

Family Bank reverses loss making streak with Sh35.9m profit

The bank recorded a 5.29 percent in customer deposits closing the quarter at Sh46.9 billion while operating costs dropped by 14 percent.

NAIROBI, Kenya, May 31 – Family Bank has bounced back to profitability posting a Sh35.9 million profit in the first three months of 2018 compared to a loss of Sh259.5 million same period last year.

The Bank’s Chief Executive David Thuku says streamlining the business operations and cost containment, coupled with improved operational efficiency has led to an improvement in its liquidity position of 32.4 percent compared to 26.5 percent recorded in 2017.

“We are now seeing the results of our continued investment in technology-based financial solutions that offer our customers convenience and relevance. We are well aligned with our customers and this gives us the confidence that our profitability will maintain a positive trajectory,” said Thuku.

The bank recorded a 5.29 percent in customer deposits closing the quarter at Sh46.9 billion while operating costs dropped by 14 percent.

 A steady growth in customer deposits and non-interest income, coupled with cost containment and improved operational efficiency has seen Family Bank bounce back to profitability, booking a Sh35.9 million net profit in the first three months of 2018.

Net interest income was marginally down by 0.84pc reflecting the impact of the interest rate cap.

Staff costs were significantly down by 15.7 percent to Sh444.5 million compared to Sh527.2 million recorded in Q1’2017.

The tough macro-economic environment saw non-performing loans and advances increase by 36.35 percent in Q1’2018 compared to same period under review in 2017.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...