Family Bank has announced that it has recorded a Ksh. 244 million net profit for the Financial Year 2018. This is a marked improvement from a Ksh. 1 billion loss reported in 2017.
The Family Bank Board Chairman, Dr. Wilfred Kiboro attributed the improved financial performance to an increase in non-interest income which grew 15% from the previous year and a Kshs 1.5 Billion reduction in operating costs. This translated to a 19% saving relative to the 2017 financial year. The Bank’s deposits grew by 2.4% to hit Ksh 48.4 Billion while the loan book remained largely steady, recording a growth of 1.5% to Ksh 4.1 Billion. However, the quality of the loan book improved in the 2018 financial year with the lender posting a 17% reduction in loan loss provisions.
“Our growth strategy, pegged on innovation and providing value for our customers, yielded great results for us in 2018. Last year, the Bank invested heavily in revamping our PesaPap mobile application and greatly enhanced the features as well as the customer journey and experience. We have advanced over Ksh. 1.2 billion through the App since the launch of the mobile lending service in July 2018. The Bank also became the first Kenyan lender to offer an instant money transfer service from Kenya to China and India, in partnership with London-based financial technology firm SimbaPay. WeChat and PayTM integration was a game changer for thousands of local businesses that trade with counterparts in China and India respectively. The service dubbed Family Bank Remit is available to both customers and non-customers and enables users to send money easily and conveniently to more than 15 destinations in Africa and beyond,” Dr. Kiboro added.
The bank has been undergoing turbulent times since they were named as a conduit for stolen NYS funds. In January, the bank committed to pay Ksh. 40 million to the court and Ksh. 24.5 million to the National Youth Service (NYS) as part of a plea bargain for failing to report unusual transactions in its accounts. The bank recently appointed Rebecca Mbithi as the new CEO.