Family Bank has posted an impressive Sh1.440 billion Profit Before Tax for the group for the Full Year 2020 against Sh1.422 Billion in 2019, a 1.3 percent growth, demonstrating the Bank’s resilience amidst a challenging operating environment.
The Group reported a 14.9 percent growth in the total assets to Sh90.6 Billion with customer deposits registering a growth of 20.3 percent to Sh69.8 Billion for the period under review.
Investments in government securities increased by 65.9 percent from Sh10.2 Billion to Sh17 Billion. This boosted the Bank’s liquidity position to 37.1 percent, significantly above the minimum requirement of 20 percent.
“Our loan book expanded by 11.8 percent year on year to close at Sh56.6 billion as we continued to support our customers who saw new opportunities despite the Covid-19 pandemic. This support was in diverse sectors such as manufacturing, agribusiness, trade, logistics and technology,” said Family Bank Chief Executive Officer Rebecca Mbithi.
Net interest income grew by 28.4 percent, an Sh1.4 Billion growth to S6.4 Billion compared to Sh5 Billion in a similar period in 2019.
The Bank’s operating expenses increased by 20.2percent to Sh7.6 Billion from Sh6.3 Billion mainly driven by loan loss provisions which increased by more than 2.5 times from Sh734 Million in 2019 to Sh1.62 Billion in 2020, a significant increase on a year-on-year basis.
Total non-funded income dropped by 4 percent to Sh2.7 Billion partially owing to the waiver on mobile transaction fees to cushion our customers against the adverse effects of the coronavirus pandemic.
“Looking ahead, our 2020 to 2024 strategy continues to be pegged on delivering end to end value chain propositions that begin from delivering an unmatched digital and customer experience, growing our pool of strategic partners to diversifying solutions targeted at different customers in our value chain. We are also deliberate in building a sustainable and responsible business. As such, we have joined the UN Global Compact and to which we have committed KES 300 Million to advance inclusive development, ” added Mbithi.
The Group recorded a decline in net non-performing loans of 11.4 percent to close at ShS 3.9 Billion. Profit After Tax for the full year in review was at Sh1.2 Billion, 22.4 percent earnings in growth compared to the same period in 2019.
The Bank has restructured loans of over Sh16 billion as it seeks to support MSMEs during the coronavirus pandemic.