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.