Family Bank defied the trend among lenders reporting their full year 2020 results as profit before tax rose 1.3% to Ksh1.44 billion up from Ksh1.42 billion in 2019. Profit After Tax for the full year in review was at Ksh1.2 billion, up from Ksh949.8 million the previous year.
The bank’s results demonstrated resilience in a tough operating environment that has seen several banks report significant profit declines. The lender’s total assets grew 14.01% to Ksh90.6 billion with customer deposits also increasing to Ksh69.8 billion, representing a 20.3% rise.
The impact of the Covid-19 p******c saw loan loss provisions spike from Ksh734 million in 2019 to Ksh1.62 billion in 2020, driving total operating expenses up 20.2% to Ksh7.6 billion from Ksh6.3 billion in 2019.
The bank’s liquidity position rose to 37.1%, significantly above the minimum requirement of 20% – boosted by increased investments in government securities up 65.9% from Ksh10.2 billion to Ksh17 billion.
Family Bank restructured loans worth Ksh16 billion as it looked to support Small and Medium Sized Enterprises (MSMEs) through the p******c.
“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 p******c.
“This support was in diverse sectors such as manufacturing, agribusiness, trade, logistics and technology,” noted Family Bank Chief Executive Officer Rebecca Mbithi.
Total non-funded income dropped by 4% to Ksh2.7 billion partially owing to the waiver on mobile transaction fees to cushion our customers against the adverse effects of the coronavirus p******c.
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The group recorded a decline in net non-performing loans of 11.4% to close at Ksh3.9 billion.
Mbithi voiced a positive medium-term outlook, highlighting focus on delivering strategic digital services and building a sustainable business.
“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 Ksh300 Million to advance inclusive development, ” she announced.