Family Bank has posted Ksh 187.8 million net profit in nine months for the financial period ended September 30, 2018 completing a remarkable change in fortunes after the bank recorded a loss of Ksh743.1 million at the same period last year.
The lender attributes the improving profits to more emphasis on digital banking that has culminated into growth in credit uptake through the revamped PesaPap app.
Operational efficiency has also been cited as a contributing factor in the uptick in profits by the lender.
Net loans and advances to customers grew by Ksh190.8 million to close at Ksh44.6 billion while net interest income grew by 5.5 % to Ksh 3.1 billion compared to Ksh2.9 billion at the same period in 2017.
Interest from government securities also grew by 8.1% to close at Ksh567.9 million. The bank’s financial results also show that the lender maintained a strong liquidity position closing the period at 33.4 %.
Family Bank’s aggressive cost containment efforts resulted in a decrease in the total operating expenses by 15.4% closing the period at Ksh4.7 billion. Staff costs significantly reduced by 19.3% to Ksh 1.3 billion compared to Ksh 1.6 billion recorded in September 2017.
“We continue to refine our business model to drive cost management, lean processes and product optimisation to provide value to our customers and to our shareholders. As witnessed in our financial results this year, the strategy continues to improve our bottom line having consistently posted profit this year,” said Family Bank Acting Managing Director and Chief Financial Officer Charles Njuguna in a statement to newsrooms.
Customer deposits marginally decreased by 0.5% to stand at Ksh 47.9 billion as of September 2018.
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Gross non-performing loans and advances decreased by Sh 6.5 million as of September 2018 compared to a similar period in 2017.