Family bank has registered an increase in its half-year profits from Ksh 364.4 million to Ksh 601.7 million. This represents a 65 per cent increase in its half-year profits.
The positive earnings are as a result of better interest revenue from higher offering in the period.
The bank’s total operational income increased by 14 per cent to Ksh4.1 billion. Interest income on the other hand rose by 26 percent to Ksh 2.9 billion to compensate a 7.7 per cent drop in non-funded income (NFI) to Ksh 1.2 billion.
The lender has increased its loan loss provisions by 32 per cent to Ksh 451.4 million – in a move experienced by other industry players who have been left with no option as a result of the effects of the COVID-19 pandemic.
Total operating costs have consequently increased by 9.8 percent to Ksh 4.5 billion.
“The bank’s impressive performance is a testament of the resilience of our business in light of our current tough operating environment amidst the COVID-19 pandemic. Going forward, for our business outlook, we remain focused on driving a differentiated customer experience driven by a deeper understanding of our customers, automation and digitization of our processes,” noted Family Bank’s CEO Rebecca Mbithi.
In terms of gross non-performing loans (NPLs), the lender has seen a rise by 11 percent to Ksh 9.1 billion from Ksh 8.2 billion in 2019.
The lenders increase in revenues has in turn resulted in the bank’s earnings per share (EPS) increase from 30 cents to 47 cents in the period.