Family Bank, a mid-sized lender, has defied a tough business terrain attributed to the coronavirus pandemic, to nearly double its net earnings to KSh 638.5 Million in H1, 2020.
This is compared to a net profit of KSh 364.4 Million realised at the end of the first six months of 2019.
In disclosures contained in the lender’s unaudited financial statements for the period ended 30th June 2020, its net exposure to non-performing loans declined to KSh 183.4 Million compared to KSh 235.4 Million at the close of H1, 2019.
“The bank’s impressive performance is a testament of the resilience of our business in the light of a tough business environment occasioned by the COVID-19 pandemic,” said Rebecca Mbithi, Managing Director and Chief Executive, Family Bank in a statement.
Total interest income from loans to customers, investment in government paper as well as deposits for other financial institutions, rose from KSh 3.3 Billion to KSh 4.1 Billion during the period under review.
The lender’s balance sheet size grew from KSh 72.7 Billion to KSh 86.9 Billion in H1, 2020, with customer deposits rising from KSh 54 Billion to KSh 66.7 Billion.
Since onset of the pandemic, Family Bank has restructured loans worth KSh 15 Billion and increased its loan loss provisions from KSh 341.4 Million to KSh 451.4 Million.
Family Bank is keen to digitize all its processes and cushion businesses, especially the medium and small-sized enterprises, from emerging pressures occasioned by the pandemic.
The lender’s gross profit in H1, 2020 increased to KSh 852.1 Million from KSh 520.9 Million in the previous period, a growth of 17.55% while total comprehensive income nearly doubled from KSh 364.4 Million to KSh 638.5 Million.
The Group’s net loans and advances to customers increased from KSh 46.7 Billion to KSh 54.9 Billion while cash held by the bank at the end of H1, 2020 stood at KSh 3.4 Billion compared to KSh 3.1 Billion in a similar period last year.
Total Operating Income increased to KSh 4.2 Billion from KSh 3.6 Billion, an increase of 17.6 % while non funded income rose 1.4% to KSh 1.3 Billion.
