Interest bearer Net income Q3 of Family Bank
Family Bank’s after-tax profit jumped 64.4 percent for the nine months ending September on strong interest income.
The lender’s net profits for the period reached 1.74 billion shillings from 1.05 billion shillings last year, supported by a significant increase in interest income from loans.
The bank reported Sh6.19 billion interest on loans and advances of Sh5.36 billion last year on increased loan disbursements and repayments.
The performance was also supported by a decrease in provisioning for loan losses, which fell to 811 million shillings from 866 million shillings following the improvement in the business environment following the advent of Covid-19. last year. Gross non-performing loans, however, rose to 10.8 billion shillings from 9.2 billion shillings, indicating that borrowers are still struggling to recover from Covid.
At the same time, customer deposits increased to Sh 81.9 billion from Sh 69.6 billion last year.
Family Bank in June raised 4.42 billion shillings against a target of 3 billion shillings in its 5.5-year bond issue.
The lender plans to use the money to expand its presence in the counties as it prepares for Level I status over the next three years and is also strengthening its IT infrastructure to handle the increase in digital lending.
The bank has indicated plans to expand its branch network from the current 92 outlets in 37 counties. Having managed a branch in 1985, the lender has grown over time and, in addition to 92 branches, it has over 4,000 bank agents and around 10,000 merchants nationwide.