Nairobi, KENYA: Family Bank’s performance has continued going on an upward trajectory registering a sh. 187.8 million net profit in the nine months ending September 30, 2018.
According to Family Bank’s Acting Managing Director and Chief Finance Officer Charles Njuguna, this has largely been 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.
He added that the Bank’s profit position for the nine months ended September is a remarkable turnaround from the same period last year when the Bank registered a loss of Ksh743.1 million.
Net loans and advances to customers grew by Ksh190.8 million to close at Ksh44.6 billion while net interest income grew by 5.5 percent to Sh 3.1 billion compared to KSh2.9 billion in the same period under review in 2017. Interest from government securities also grew by 8.1 percent to close at Ksh567.9 million.
The Bank maintained a strong liquidity position closing the period at 33.4 percent.
Family Bank’s aggressive cost containment efforts resulted in a decrease in the total operating expenses by 15.4 percent closing the period at Sh4.7 billion. Staff costs significantly reduced by 19.3 percent to Sh 1.3 billion compared to Sh 1.6 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 bottom line 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 percent and stood at Sh47.9 billion as at September 2018.
However, gross non-performing loans and advances decreased by Sh 6.5 million as of September 2018 compared to the same period under review in 2017
This comes barely a week after the company’s mobile application ‘Pesa Pap’ owned by Family bank, announced to have surpassed the Ksh500 million mark in loans disbursed to both its customers and non-customers within a three-month period.