This archive report was first published on 23 May 2020.
On May 23, 2020, Family Bank announced an 85% rise in net profit for the three months to March, driven by improved lending and the removal of the rate cap in November 2019.
The bank's net profit grew to Sh297.8 million, up from Sh160.8 million in a similar period last year. Lending increased from Sh45.6 billion to Sh53 billion over the period.
Family Bank CEO Rebecca Mbithi attributed the growth to an increase in loans and advances to customers, which positively impacted the bank's bottom-line. 'The increase in loans and advances to customers positively impacted the bank's bottom-line, with an increase in interest income from loans and advances hitting Sh1.7 billion during the first quarter of 2020, up from the Sh1.4 billion that the bank made during the same period in 2019,' she said.
Non-interest income, including increased investment in government securities, also contributed to the bank's growth. Total operating expenses marginally rose by Sh149.52 million to Sh1.71 billion, highlighting the cost containment measures being implemented by the bank.
Family Bank registered the growth at a time the rate cap law had been repealed, growing customer deposits by 18% to Sh61 billion while focusing on automation and digitisation that has seen the lender move 80% of transactions online.
Ms Mbithi said the bank will weather the coronavirus storm by focusing on cost containment and encouraging the use of alternative banking solutions to meet customer needs during this period.
