Family Bank rides loan growth to higher profits

Family Bank has announced a Sh1.8 billion after tax profit for the nine months ending in September 2015 compared to Sh1.36 billion the previous period.

The bank attributed the jump in earnings to increased lending.

Its focus on small and medium enterprise lending and personal loans has resulted to a significant jump in its loan book from Sh37.9 billion to Sh52.8 billion.

The results were also supported by aggressive growth in deposits and higher transaction income.

“The growth was buoyed by a significant jump in net interest income to slightly over Sh5 billion from Sh3.9 billion as a result of an expanded loan book which grew by 39 per cent,” Family Bank said in a statement sent to media houses.

The bank is seeking to boost its capital through a bond issue and recently raised Sh2 billion from the local market which is already trading at the Nairobi Securities Exchange.