Family Bank’s net earnings for the first six months of 2019 more than doubled to Sh364.4 million driven by growth in interest and non-interest income as operating costs reduced.
The net interest margin grew by 13 percent to hit Sh2.29 billion.
This was due to a 6.5 percent expansion of the loan book to Sh46.7 billion in a period that saw interest expenses drop by 16 percent to Sh1 billion.
Interest income grew 1.9 percent to Sh3.29 billion while non-interest income was up 4.5 percent to Sh1.3 billion helping the bank to post a strong performance in the half-year ending June 2019.
At Sh364.4 million net profit for the half-year, the bank has surpassed the Sh244.2 million profit that was achieved in the full year ended December 2018.
“We have continued on an upward growth trajectory thanks to increased lending especially on our digital platform PesaPap,” said chairman Wilfred Kiboro. “Our investment in digital banking and our deposit mobilisation strategy has borne fruit as witnessed in our half-year profits.”
Operating expenses dropped marginally by 1.9 percent to Sh3.08 billion partly driven by a 13.5 percent drop in loan loss provision to Sh341 million.
Customer deposits rose from Sh47.7 billion to Sh54 billion, being a 13 percent growth. However, interest paid on customer deposits dropped by 2.8 percent pointing to receiving of deposits that do not bear interest.
The board is confident of a strong second half driven by renewed customer confidence, according to Mr Kiboro.