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Family Bank defies Covid, posts rise in its earnings

UN Global Compact Kenya Network Executive Director Judy Njino (left) hands over the membership certificate to Family Bank CEO Rebecca Mbithi which will see Family Bank become the fourth bank in Kenya to officially join the United Nations.

Family Bank posted a 22.4 percent growth in net profits to Sh1.1 billion for the year ending December 2020 courtesy of increased lending despite the coronavirus scourge that hit business.

The lender posted Sh949 million the previous year but says it defied the Covid-19 pandemic by growing its loan book to Sh56.6 billion while supporting customers who saw opportunities despite the difficult year.

Targeted sectors in manufacturing, agribusiness, trade, logistics and technology saw the lender grow interest income from Sh7.1 billion in 2019 to Sh8.8 billion last year.

“Our loan book expanded by 11.8 percent year on year to close at Sh56.6 billion as we continued to support our customers who saw new opportunities despite the Covid-19 pandemic,” said Family Bank Chief Executive Officer Rebecca Mbithi.

Non-performing loans

Net interest income grew by Sh1.4 billion growth to Sh6.4 billion compared to Sh5 billion in a similar period in 2019. The bank’s operating expenses increased by to Sh7.6 billion from Sh6.3 billion mainly driven by loan loss provisions, which increased by more than 2.5 times from Sh734 million in 2019 to Sh1.62 billion in 2020. This was in response to Sh1.1 billion growth in non-performing loans to Sh9.3 billion as customers struggled to meet repayments during the difficult year. – nation.co.ke