Mid Tier lender, Family Bank Kenya has reported a drop of 82,21% in its full year 2016 after tax profits to Sh352.5 million from the previous year’s Sh1.98 billion.
From the financial results, the drop was mainly as a result of increase in loan loss provisions and high expenses which rose from Sh 6.4 Billion to Sh 8.4 Billion as at December 2016.
The Bank’s Managing Director David Thuku said “We did take a hit on our bottom-line arising from the turbulence we faced last year. The sustained social media attacks which led to significant withdrawals took a further toll on our profitability.”
Customer deposits fell by 34% to Sh41.4 billion compared to Sh62.71 Billion posted in 2015 while total loans and advances to customers fell by 10% to Sh50 billion from Sh55.9 billion.
Interest income was up marginally from Sh 10 Billion in 2015 to Sh 10.8 Billion while non interest income fell from Sh 2.98 to Sh 2.4 billion – 19% drop.
Gross Non Performing loans more than doubled to Sh7.02 billion compared to Sh3.52 billion posted in 2015 in what the Bank said was as a result of a “tough operating environment which slowed down its clients.”
Mr Thuku who took over as CEO about one year ago also noted that they incurred a one off cost amounting to Sh 380 Million to lay off 250 employees.
