Family Bank Posts 71.3% Net Profit Growth in Q1 2021

Family Bank Group posted KES 728.8 million Profit Before Tax for the first quarter of 2021. This is a 71.3% increase in earnings compared to the KES 425.6 million reported in Q1’2020.

Net interest income rose by 27.2% to KES 1.8 billion supported by the increased lending as the loan book expanded by 15.9% to KES 61.4 billion, which is KES 8.4 billion growth from Q1, 2020.

Customer deposits grew by 18.3% quarter on quarter to close at KES 72.5 billion while total assets grew by 14.9% to KES 94.8 billion.

Non funded income marginally decreased from KES 714.9 million to KES 711.2 million at the back of the waiver of mobile banking charges to customers. During the same period, operating expenses marginally increased by 4.6% to KES 1.8 billion.

“We continue to execute our 2020 – 2024 strategy which positions the bank as a strong SME bank. Our strategy execution is on course, and we remain optimistic that the operating macro-economic environment will improve in the remaining part of the year.

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“We are happy that a significant number of customers, who were affected by COVID-19 pandemic in 2020, are slowly getting back on track as we continue to support their growth,” said Family Bank CEO Rebecca Mbithi.

Loan loss provisions rose to KES 360.1 million to support customers against the adverse economic effects of the pandemic. The Group recorded a decline of 4.7% in net non-performing loans for the three months under review showing the resilience of clients.

The Bank’s core capital grew by 11% to stand at KES 12.6 billion compared to KES 11.4 billion in Q1’2020. Liquidity remained significantly above the minimum requirement of 20% at 32.4%.

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