Family Bank CEO Rebecca Mbithi during a past investors forum. The bank has reported 58% increase in profitability for the nine months ended September 2020.

Family Bank has been on an upward trajectory since Rebecca Mbithi was appointed Chief Executive in April 2019 and has consistently posted increases in profits in all five reporting periods she has been at the helm.

In the latest reporting period, the nine months ended September 30, 2020, Family Bank on Friday reported a 58% increase in profit after tax to Ksh1.1 billion compared to Ksh705 million reported at the same period the previous year.

The lender became the first and only listed lender as of Friday to report an increase in profitability during the period under review as all other banks caught a cold from the virus that has backed bank executives to the wall.

At the end of September 2020, the lender’s balance sheet had fattened to Ksh90.2 billion up from the Ksh79 billion keyed in September 2019.

Customer deposits grew by 15.2 percent to Ksh69.4 Billion while the loan book grew by 14.9 percent compared to the same period in 2019 closing at Ksh56.7 Billion.

Interest income adjusted up to Ksh6.5 billion compared to Ksh5.2 billion recorded in the same period last year with income from loans and advances and government securities having played a key role in the growth.

Non-interest income remained locked at Ksh2 billion as operating expenses increased to Ksh5.1 billion from Ksh4.6 billion.

Consequently, the firm’s profitability as seen in Earnings Per Share (EPS) ticked up to Ksh0.87 from Ksh0.55.

“Our main focus at the Bank has been solely how to support our customers in the face of the COVID-19 pandemic. The numerous interventions that we have taken in this regard include restructuring and moratoriums on loans, waiving fees on digital transactions and building the capacity of our customers in the SME sector. We are glad to have managed this effectively and still be able to increase our income in such times of uncertainty,” said Ms. Mbithi.

She added that Family Bank has signed some key strategic partnerships that have positively impacted customers.

They include a financing deal with Wellwise Solutions benefitting SMEs in the health sector seeking financing.

Family Bank also signed a partnership with Performeter Agribusiness Limited setting aside Ksh1 Billion to fund fodder production for dairy farmers in cooperatives.

Turnaround

The lender turned heads when it posted a Ksh949 million profit for the full year ended December 2019, a 288% increase on the Ksh244.2 million it reported the previous year.

On current form, the lender looks like a solid bet to keep up the good performance.

Back in April 2019, the bank was struggling to shake off negative publicity after it emerged that the bank had been used as a conduit for public funds looted from the National Youth Service (NYS) in the infamous NYS I Scandal forcing the group’s board to kick out the then CEO David Thuku who announced his “resignation” in September 2018.

What a turnaround.

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