The lender made a net profit of Sh352.2 million in the period compared to Sh1.9 billion the year before.
Family Bank’s CEO David Thuku said the lender suffered deposit flight following social media attacks.
Operating expenses jumped 31.8 per cent to Sh8.4 billion, partly driven by quadrupling of loan loss provision to Sh847.
Family Bank’s net profit dropped 82.2 per cent in the year ended December, weighed down by higher expenses and lower fees on transactions.
The lender made a net profit of Sh352.2 million in the period compared to Sh1.9 billion the year before.
Interest expenses rose 12.8 per cent to Sh4 billion despite customer deposits shrinking by a third to Sh41.3 billion, indicating higher rates offered to depositors.
Family Bank’s CEO David Thuku said the lender suffered deposit flight following social media attacks.
Operating expenses jumped 31.8 per cent to Sh8.4 billion, partly driven by quadrupling of loan loss provision to Sh847.3 million. The higher provision came as gross non-performing loans doubled to Sh7 billion. The lender also spent Sh380 million last year to retrench 250 employees, raising its staff costs 11.2 per cent to Sh2.9 billion.
“We are just coming to the tail end of that (restructuring),” Mr Thuku said. Non-interest income dropped 18.9 per cent to Sh2.4 billion.
