This archive report was first published on 20 August 2019.
Family Bank has reported a significant surge in profits, tripling to Ksh345 million in the first half of 2019, a 358% increase from the same period in 2018.
According to the bank's latest financials, the growth is attributed to increased customer deposits and higher interest from loan uptake.
Family Bank's loan book grew by Ksh2.9 billion to Ksh46.7 billion, contributing to a net interest margin growth of 13% to Ksh2.29 billion.
The lender's deposit book also saw a 13% growth to Ksh54 billion, up from Ksh47 billion in the same period last year.
Family Bank's liquidity remains stable at 12.9%, above the minimum statutory ratio of 20%, while loan loss provision decreased by 13.5% in the period under review.
Non-interest income grew 5% to Ksh1.31 billion, driven by foreign exchange trading income and other fees and commissions.
Family Bank's digital growth is a sign of financial inclusion, with the bank's Chair, Dr. Wilfred Kiboro, stating that the lender will continue to grow investment in financial technology innovations and leverage strategic partnerships to meet the needs of the ever-growing SME industry.
Dr. Kiboro attributed the bank's upward growth trajectory to increased lending on the digital platform PesaPap, as well as the bank's investment in digital banking and deposit mobilization strategy.
Family Bank's turnaround last year was also attributed to digital growth, with the bank posting a nine-month profit of Ksh187.8 million in September 2018, against a loss of Ksh743.1 million in the same period the previous year.
Rebecca Mbithi, the bank's CEO, has been instrumental in the bank's growth, with Dr. Kiboro stating that she has been instrumental in strategy and business development, capital and debt raising, risk management, compliance and controls, and providing legal services and strengthening the bank's governance structures.
