Gross non-performing loans jumped 92.14 per cent or Sh3.98 billion to Sh8.3 billion.
The bank’s interest income declined 43.72 per cent to Sh1.68 billion as its loan book shrunk by Sh12 billion in the period.
Family Bank has posted a Sh259.57 million after-tax loss for the first three months of the year, citing a sharp rise in bad loans and the interest rate cap which ate into its profitability.
The lender reported a net profit of Sh344.9 million during a similar period a year ago.
The bank’s interest income declined 43.72 per cent to Sh1.68 billion as its loan book shrunk by Sh12 billion in the period to stand at Sh46.64 billion.
“We slowed down on lending to focus our efforts in strengthening the liquidity position,” said Family Bank CEO David Thuku.
“We had to address the significant withdrawals that took a toll on our 2016 performance and also embark on recovery efforts following the hit on our bottom-line,” he added in a statement Wednesday.
Gross non-performing loans jumped 92.14 per cent or Sh3.98 billion to Sh8.3 billion, prompting the mid-sized lender to raise its provisions for the bad debt by 206.4 per cent or Sh167 million to Sh247.9 million in the period.
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