Family Bank bounces back with a Sh100m HY profit

August 30, 2018 (4 weeks ago)
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The Bank recorded slight growth in customer deposits closing at Sh47.8 billion as at June 2018. 

NAIROBI, Kenya, Aug 30 – Family Bank has posted a Sh101.5 million net profit for the first half of 2018 recovering from a challenging 2017 where the bank registered a loss of Sh492.4 million same period last year. 

Family Bank Chief Executive Officer David Thuku says the cost containment measures, digital banking and growth in deposits have been the main drivers of the recovery.

The Bank recorded slight growth in customer deposits closing at Sh47.8 billion as at June 2018.

Total non-interest income grew by 11.9 per cent to Sh1.25 billion compared to Sh1.1 billion in the same period under review in 2017.

The Bank’s cost containment efforts resulted in a decrease in the total operating expenses by 11.9 per cent closing the period at Sh3.1 billion.

“We have remained focused on operational efficiency and revenue optimization as key pillars of our business recovery strategy over the first half of 2018. We are optimistic of a stronger second half riding on the traction on our digitization strategy and support from our customers,” said Thuku.

Net interest income grew marginally by 3.8 per cent while staff costs significantly decreased by 16.8 per cent to Sh881.2 million compared to Sh1.1 billion recorded in June 2017.

Gross non-performing loans and advances increase by 7.2 per cent as at June 2018 compared to same period under review in 2017.

Interest income from loans and advances also decreased by 7.0 per cent and stood at Sh2.8 billion compared to Sh2.9 billion at the end of June 2017 but this was partially offset by a 31.1pc increase in interest earned on government securities.

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