This archive report was first published on 22 May 2020.
On May 22, 2020, Family Bank reported an impressive 85 percent increase in its profit before tax for the first quarter of 2020, reaching Sh425.6 million.
The bank's net loans and advances to customers grew to Sh53.0 billion, up from Sh45.6 billion as of March 2019, representing a Sh7.4 billion increase.
This significant growth in loans and advances positively impacted the bank's bottom line, with interest income from loans and advances hitting Sh1.7 billion during the first quarter of 2020, up from Sh1.4 billion in the same period in 2019.
Non-interest income, including increased investment in government securities, also contributed to Family Bank's impressive performance, standing at Sh9.4 billion from Sh7.2 billion in 2019.
Family Bank earned Sh309.5 million from government securities, a 68.5 percent increase from Sh183.6 million in the first three months of 2019.
"We have been able to register profit and grow our customer deposits by 18 percent to Sh61 billion in the first quarter of 2020," said Family Bank CEO Rebecca Mbithi. "Our overall growth is attributable to our efforts to support our customers through building strong relationships, providing innovative products, and strong partnerships that are aimed at enhancing customer experience." Mbithi added, "With the COVID-19 pandemic, we are hopeful that measures put in place by the Central Bank of Kenya to facilitate lending and enhancing liquidity will strengthen the financial sector and in turn promote trade." The bank has witnessed a migration of over 80 percent of its transactions to digital, and with the automation and digitization of critical processes, Family Bank will continue to drive digital transactions to provide convenient banking solutions, especially during the pandemic.
Family Bank's net interest income expanded by 24.8 percent to Sh1.4 billion from Sh1.13 billion recorded last year, supported by the increase of loans and advances, which grew by 16 percent.
The bank is keen on increasing the contribution of non-interest income, after the lender made Sh714.9 million in total non-interest income during the first quarter, up by Sh63.1 million when compared to the same period in 2019.
Going forward, the bank projects that it will weather the tough operating environment characterized by the COVID-19 pandemic to grow its earnings in 2020.
