Family Bank Kenya announced on Monday its profit after tax closed the period at Sh704.7 million compared to KSh187.8 million compared to a similar period last year.
Its jump in profit for the nine months to September was attributed to growth in non-interest income and gains from loans and advances.
By asset base, Family Bank’s balance sheet expanded by 14.8 percent to Sh 78.9 billion with deposits growing by 26 percent to Sh 60.2 billion supported by aggressive deposit mobilization for institutional, personal and transaction accounts.
“Since Q3 of 2018, our earnings have been on steady growth and we thank our customers for the continued support cemented by the growth in their uptake of our products and services. We continue to maintain a strong capital position despite the adoption of IFRS 9 Accounting Standard. We have continued to enhance the quality of our loan book capping our non-performing loans at 15.5 percent as at September 2019,” said Family Bank Chief Executive Officer Rebecca Mbithi.
The net interest margin grew by 16.7 percent from Sh 3.1 billion to Sh 3.6 billion, attributable to a tremendous expansion of the loan book and a 12.2 percent decrease in interest expense.
The loan book grew by Sh4.7 billion to hit Sh 49.3 billion as at September 2019 attributed to aggressive lending to micro, small and medium-sized enterprises.
Non-interest income also grew by 10.6 per cent to Sh 2.1 billion, driven by foreign exchange trading income and other fees and commissions.
The Bank’s liquidity has remained strong at 36.6 per cent, which above the minimum statutory ratio of 20 per cent.