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Family Bank Q1 Profit Soars 85% to Sh298 Million

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Listed Tier II Lender Family Bank has reported an 85% increase in profit after tax to Ksh298 million for the three months ended March 2020 up from the Ksh161 million reported at a comparable period the previous year.

The group’s balance sheet shows the lender’s total assets are worth Ksh82.5 billion, a significant growth from the Ksh70.2 billion posted a year earlier.

Family Bank’s Q1 2020 profits were driven by interest income which stood at Ksh1.9 billion up from the Ksh1.6 billion reported in March 2019 while non-interest income rose to Ksh714.9 million from Ksh652 million during the period under review.

The lender raked in Ksh133 million from forex trading up from Ksh88 million while fees and commissions on loans and advances rose to Ksh32.7 million from Ksh31.7 million.

Family Bank spent some Ksh43.6 million on directors emoluments up from Ksh17.7 million while staff costs set back the company Ksh572 million, an increase from the Ksh177 million reflected in the Q1, 2019 results.

“We have been able to register profit and grow our customer deposits by 18% to Sh 61 billion in the first quarter of 2020. Our overall growth is attributable to our efforts to support our customers through building strong relationships, providing innovative products and strong partnerships that are aimed at enhancing customer experience,” said Family Bank CEO Rebecca Mbithi while releasing the results.

Magical Mbithi

The bank maintains its strong growth streak after reporting a 288% increase in profit to Ksh949 million after tax for the full year ended December 2019 from the Ksh244 million reported the previous year.

Mbithi attributed the solid growth to a risk taking mindset that is paying dividends.

In the nine months ended September 2019, the bank also tripled its profit to Ksh704.6 million on the back of growth in interest and non interest income as operating costs reduced.

Mbithi was named Family Bank Managing Director & CEO in February 2019 replacing David Thuku who resigned in September 2018 after being accused of presiding over the battering of the bank’s reputation after it emerged that various transactions in the infamous National Youth Service (NYS) I scandal were done through Family Bank.

Under her watch, the lender has slowly recovered from the reputation risk and posted healthy revenues.

Before being tapped for the CEO position, she was the lender’s company secretary and director, legal services.

See Also>>> Upward Revision of Mobile Money Limit Sees Kenyans Move Multi Millions Via Mobile

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