This archive report was first published on 27 November 2019.
Family Bank has defied market headwinds to post a remarkable 300% growth in profit for the third quarter of 2019. The lender's profit after tax stood at Sh704.6 million as of September 30, a significant jump from the Sh187.7 million recorded in the same period the previous year.
The bank's performance was attributed to its aggressive deposit mobilization and prudent cost management, which saw its operating expenses drop by Sh23.9 million from Sh4.69 billion to Sh4.66 billion. Family Bank's Chief Executive, Rebecca Mbithi, attributed the growth to the adoption of digital channels, which saw 70% of transactions conducted online, including loan advances.
Ms Mbithi noted that the bank's loan book grew from Sh44.5 billion in the nine months to September last year to Sh49.3 billion this year. The bank's net interest income also grew by 16% from Sh3.1 billion to Sh3.6 billion.
Family Bank's chairman, Wilfred Kiboro, emphasized that the lender would not compromise on its commitment to varied stakeholder interests, even as it seeks to bring on board more institutional clients. He also stated that the bank would not review its lending rates despite the removal of the rate cap.
Published on November 27, 2019.
