Family Bank registers growth and profit for Q1, 2018

Family Bank registers growth and profit for Q1, 2018

A steady growth in customer deposits and non-interest income, coupled with cost containment and improved operational efficiency has seen Family Bank bounce back to profitability, booking a Sh35.9 million net profit in the first three months of 2018.

The bank recorded a 5.29 per cent in customer deposits closing the quarter at Sh46.9 billion while it maintained an even stronger liquidity position of 32.4 per cent compared to 26.5 per cent recorded during a similar period in 2017. This is 12.4 per cent above Central Bank of Kenya’s statutory requirement of 20.0 per cent. The Bank managed its operating costs downwards by 14.1% and maintained a strong capital position.

The Q1, 2018 profit position is a remarkable turnaround from the same period last year when the bank registered a loss of Sh259.5 million.

“We are now seeing the results of streamlining our business operations and cost containment as well as our continued investment in technology-based financial solutions that offer our customers convenience and relevance. We are well aligned with our customers and this gives us the confidence that our profitability will maintain a positive trajectory” said Family Bank Managing Director and Chief Executive Officer Dr. David Thuku.

Net interest income was marginally down by 0.84% reflecting the impact of the interest rate cap. Staff costs were significantly down by 15.7 per cent to Sh444.5 million compared to Sh 527.2 million recorded in Q1’2017. The tough macro-economic environment saw non-performing loans and advances increase by 36.35 per cent in Q1’2018 compared to same period under review in 2017.

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