This archive report was first published on 25 November 2019.
On November 25, 2019, Family Bank announced a pretax profit of 1.01 billion shillings for the first nine months of the year, driven by higher interest and non-interest income.
The bank's net interest margin grew by 16.7 percent, from 3.1 billion to 3.6 billion, due to a significant expansion of the loan book and a 12.2 percent decrease in interest expense.
Non-interest income also grew by 10.6 percent to 2.1 billion shillings.
However, gross non-performing loans rose by 100 million shillings to 8.28 billion shillings, resulting in a 3.9 percent increase in non-performing loans exposure to 318 million shillings.
Speaking during the release of Family Bank's third-quarter results, chairman Wilfred Kiboro noted that the removal of interest rate caps would provide a better room for negotiation between banks and borrowers.
Mr. Kiboro added that the bank expects minimal movement in the financial sector, as majority lenders will not review their rates.
Family Bank CEO Rebecca Mbithi said the bank's earnings before tax hit 1.01 billion shillings, indicating a tremendous growth of 273 percent for Q3'2019, equivalent to a growth of 738.2 million compared to 269.9 million posted in a similar period last year.
