NAIROBI, Kenya, Nov 29 – Family Bank has posted Sh187.8 million net profit in the nine months ending September 30, 2018, a turnaround from a Sh743.1 million loss registered over the same period last year.
The management says the profit was driven by digital banking that has seen growth in credit uptake through the revamped PesaPap.
PesaPap surpassed the Sh500 million mark in loans disbursed to both its customers and non-customers within a three-month period.
According to the bank, the mobile application which was launched at the end July 2018, recorded an average of 50,000 transactions per month between August and November 2018.
The revamped PesaPap Wallet that also includes a savings and investment module registered over 44,000 new users in that same period.
Net loans and advances to customers grew by Sh190.8 million to close at Sh44.6 billion while net interest income grew by 5.5 per cent to Sh3.1 billion compared to Sh2.9 billion in the same period under review in 2017.
Interest from government securities also grew by 8.1 per cent to close at Sh567.9 million while
cost containment efforts resulted in a decrease in the total operating expenses by 15.4 per cent closing the period at Sh4.7 billion.
Staff costs significantly reduced by 19.3 per cent to Sh1.3 billion compared to Sh1.6 billion recorded in September 2017.
“We continue to refine our business model to drive cost management, lean processes and product optimization to provide value to our customers and to our shareholders. As witnessed in our financial results this year, the strategy continues to improve our bottom line having consistently posted profit this year,” said Family Bank Acting Managing Director and Chief Financial Officer Charles Njuguna.
Customer deposits marginally decreased by 0.5 per cent and stood at Sh47.9 billion as at September 2018, while gross non-performing loans and advances decreased by Sh6.5 million as at September 2018 compared to same period under review in 2017.