Family Bank’s performance has continued on an upward trajectory registering a Ksh187.8 million net profit in the nine months ending September 30, 2018. This has been largely driven by a drive in digital banking that has seen growth in credit uptake through the revamped PesaPap as well as continued improved operation efficiency that has resulted in cost containment for the bank.
The Bank’s profit position for the nine months ended September is a remarkable turnaround from the same period last year when the Bank registered a loss of Ksh743.1 million.
Net loans and advances to customers grew by Ksh190.8 million to close at Ksh44.6 billion while net interest income grew by 5.5 per cent to Sh 3.1 billion compared to KSh2.9 billion in the same period under review in 2017. Interest from government securities also grew by 8.1 per cent to close at Ksh567.9 million. The Bank maintained a strong liquidity position closing the period at 33.4 per cent.
Family Bank’s aggressive cost containment efforts resulted in a decrease in the total operating expenses by 15.4 per cent closing the period at Sh4.7 billion. Staff costs significantly reduced by 19.3 per cent to Sh 1.3 billion compared to Sh 1.6 billion recorded in September 2017.
“We continue to refine our business model to drive cost management, lean processes and product optimization to provide value to our customers and to our shareholders. As witnessed in our financial results this year, the strategy continues to improve our bottom line having consistently posted profit this year,” said Family Bank Acting Managing Director and Chief Financial Officer Charles Njuguna.
Customer deposits marginally decreased by 0.5 per cent and stood at Sh 47.9 billion as at September 2018. However, gross non-performing loans and advances decreased by Sh 6.5 million as at September 2018 compared to same period under review in 2017.