FAMILY BANK GROUP REGISTERS 1.4B PROFIT

Family Bank CEO addressing members of the fourth Easter during the release of the results. PHOTO /BEVERLYN NALIAKA

FAMILY BANK GROUP REGISTERS KES 1.4 BILLION PROFIT FOR FY’2020 RESULTS

 

By Beverlyn Naliaka

 

Family Bank posted an impressive KES 1.440 Billion Profit Before

Tax for the group for the Full Year 2020 against KES 1.422 Billion in

2019, a 1.3% growth, demonstrating the Bank’s resilience amidst a

challenging operating environment.

The Group reported a 14.9% growth in the total assets to KES 90.6

Billion with customer deposits registering a growth of 20.3% to KES

69.8 Billion for the period under review. Investments in government

securities increased by 65.9% from KES 10.2 Billion to KES 17

Billion. This boosted the Bank’s liquidity position to 37.1%,

significantly above the minimum requirement of 20%.

“Our loan book expanded by 11.8% year on year to close at KES 56.6

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%, a KES 1.4 Billion growth to KES

6.4 Billion compared to KES 5 Billion in a similar period in 2019. The

Bank’s operating expenses increased by 20.2% to KES 7.6 Billion

from KES 6.3 Billion mainly driven by loan loss provisions which

increased by more than 2.5 times from KES 734 Million in 2019 to

KES 1.62 Billion in 2020, a significant increase on a year-on-year

basis. Total non-funded income dropped by 4% to KES 2.7 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 Ms. Mbithi.

The Group recorded a decline in net non-performing loans of 11.4%

to close at KES 3.9 Billion. Profit After Tax for the full year in review

was at KES 1.2 Billion, 22.4% earnings in growth compared to the

same period in 2019.

The Bank has restructured loans of over KES 16 billion as it seeks to

support MSMEs during the coronavirus pandemic.

Family Bank prides itself in growing a very strong retail customer

base with a key focus in SME Banking. From only one branch in

1985, the Bank has grown over time and currently enjoys a branch

network of 92 branches, 4,000 bank agents and over 10,000

merchants countrywide. Family Bank was the first bank in Kenya to

introduce paperless banking through smart card technology that

enabled customers to transact without having to fill in deposit or

withdrawal slips. In 2010, Family Bank was the first bank to

introduce mobile banking in Kenya and 2016 the first to launch the

mVisa service in Africa. The Bank has received numerous awards

including the Think Business Fastest Growing Bank Award three

years in a row between 2013 and 2015, the Think Business Best

Bank in Micro-Finance Award, 1st Runner-up in 2013 and 2014. In

2017, the Family Bank was feted as the Best SME Bank in Kenya at

the annual Banker Africa Awards, East Africa – an award initiative

for financial institutions in Africa.

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