Family Bank Group’s net earnings rose by 22.4% to KSh 1.2 Billion at the end of 31st December 2020. The lender also recorded a pre-tax profit of KSh 1.440 Billion compared to KSh 1.422 Billion in 2019, a growth of 1.3%.
Family Bank’s balance sheet size grew 14.9% to KSh 90.6 Billion with customer deposits registering a growth of 20.3% to KSh 69.8 Billion for the period under review.
Family Bank investment in government securities, loan book, non-performing loans
Its Investments in Government Securities increased by 65.9% from KSh 10.2 Billion to KSh 17 Billion. This boosted the Bank’s liquidity position to 37.1%, significantly above the minimum requirement of 20%.
The lender’s net interest income grew by 28.4%, or KSh 1.4 Billion to KSh 6.4 Billion from KSh 5 Billion in 2019. The Bank’s operating expenses increased by 20.2% to KSh 7.6 Billion from KSh 6.3 Billion mainly driven by loan loss provisions which increased by more than 2.5 times from KSh 734 Million in 2019 to KES 1.62 Billion in 2020, a significant increase on a year-on-year basis.
Total non-funded income dropped by 4% to KES 2.7 Billion partially owing to the waiver on mobile transaction fees to cushion customers against the adverse effects of the coronavirus pandemic.
The Bank plans to deliver end to end value chain propositions that give customers an unmatched digital experience, growing its pool of strategic partners to diversifying solutions targeted at different customers in its value chain.
The Group recorded a decline in net non-performing loans of 11.4% to close at KSh 3.9 Billion. It has also restructured loans of over KSh 16 billion to support financially distressed customers during the pandemic.