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Family Bank Defies COVID-19 to Post 75% Profit Increase

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Family Bank has defied the current business climate to post Ksh638.5 million for the half-year ended June 2020 up from the Ksh364.4 million posted at a similar period last year, representing a 75% increase.

The major banks in the country that have reported their financial results so far have all posted reductions in earnings while all have accounted for substantially higher loan loss provisions signalling cautious approaches informed by an uncertain business environment.

The lender nonetheless accounted for a loan loss provision of Ksh451.3 million up from the Ksh341.4 million it posted in H1 2019, signalling that the bank is well aware that a huge chunk of its customers are likely to default on their loans due to the economic effects of COVID-19.

“The bank’s impressive performance is a testament to the resilience of our business in light of our current tough operating environment amidst the COVID-19 pandemic. Going forward, for our business outlook, we remain focused on driving a differentiated customer experience driven by a deeper understanding of our customers, automation, and digitization of our processes,” said Family Bank CEO Rebecca Mbithi.

As at the end of June 2020, Family Bank Group’s total bad loans stood at Ksh7.9 billion compared to Ksh7.1 billion posted last year.

Family Bank Group’s balance sheet increased to Ksh86.9 billion in the half-year ended June from the Ksh72.7 posted at the same juncture the previous year.

Customer deposits increased to Ksh66.7 billion up from the Ksh54 billion posted at the end of June 2019 while net loans and advances to customers increased to Ksh54.9 billion from Ksh46.7 billion.

During the comparable periods under review, the group’s interest income raked in from loans and advances, government paper, as well as deposits and placements with banking institutions, increased to Ksh4.1 billion from Ksh3.3 billion.

However, the group’s non-interest income fell to Ksh1.29 billion from Ksh1.31 billion.

Total shareholders funds rose to Ksh12.94 billion from Ksh11.94 billion while Earnings Per Share (EPS) rose to Ksh0.50 from Ksh0.3.

See Also>>>>Equity Group Half-Year Profits Shrink by Sh2.9bn

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