Family Bank posts Sh1 billion net loss

Family Bank has posted a Ksh 1 billion net loss for the year ending December 2017, compared to the Ksh 352 million net profit the lender posted in 2016.

The loss is on account of a reduction in net interest income which dipped 37.7% to Ksh 4.38 billion during the period.

The mid-tier lender was unable to withstand the mixed operating environment last year which saw the bank cut its total operating expenses to Ksh 7.9 billion, down from Ksh 8.5 billion recorded in 2016.

Similarly total liabilities also increased marginally by 1.1% to Ksh 57.4 billion, up from Ksh 56.7 billion realized in 2016.

Net non-performing loans also surged 63% to stand at Ksh 6 billion up from Ksh 3.7 billion. However, there was a marginal increase in non-interest income in 2017 which stood at Ksh 2.2 billion last year compared to Ksh 2 billion posted a year earlier.

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Family Bank’s loans and advances to its employees, directors, shareholders and associates marginally reduced from Ksh 3.8 billion in 2016 to Ksh 3.3 billion in 2017.

No dividend payout has been recommended for shareholders.