Family Bank’s performance has continued on an upward trajectory registering a Sh187.8 million net profits in the nine months ending September 30, 2018. This has been largely driven by a drive in digital banking that has seen growth in credit uptake through the revamped PesaPap as well as continued improved operation efficiency that has resulted in cost containment for the bank.
The Bank’s profit position for the nine months ended September is a remarkable turnaround from the same period last year when it registered a loss of Sh743.1 million.
Net loans and advances to customers grew by Sh190.8 million to close at Sh44.6 billion while net interest income grew by 5.5% to Sh3.1 billion compared to Sh2.9 billion in the same period under review in 2017. Interest from government securities also grew by 8.1% to close at Sh567.9 million. The Bank maintained a strong liquidity position closing the period at 33.4%.
Customer deposits marginally decreased by 0.5% and stood at Sh47.9 billion as at September 2018.
Family Bank’s aggressive cost containment efforts resulted in a decrease in the total operating expenses by 15.4% closing the period at Sh4.7 billion. Staff costs significantly reduced by 19.3% to Sh1.3 billion compared to Sh1.6 billion recorded in September 2017.
“We continue to refine our business model to drive cost management, lean processes and product optimization to provide value to our customers and to our shareholders. As witnessed in our financial results this year, the strategy continues to improve our bottomline having consistently posted profit this year,” said Family Bank acting managing director and chief financial officer Charles Njuguna.
Customer deposits marginally decreased by 0.5% and stood at Sh47.9 billion as at September 2018. However, gross non-performing loans and advances decreased by Sh6.5 million as at September 2018 compared to same period under review in 2017. The Group cut the loan loss provision by 21.4% to Sh1.7 billion.