Family Bank books 85pc rise in profit on improved lending

Saturday, May 23, 2020 7:36

By OTIATO GUGUYU

Family Bank CEO Rebecca Mbithi briefs investors in the past: We will focus on cost containment by using alternative banking solutions.

FILE PHOTO | NMG 

Family Bank has recorded 85 per cent jump in net profit for the three months to March as removal of the rate cap in November 2019 unlocked interest income.

“The increase in loans and advances to customers positively impacted the bank’s bottom-line, with an increase in interest income from loans and advances hitting Sh1.7 billion during the first quarter of 2020, up from the Sh1.4 billion that the bank made during the same [sic] period in 2019,” said Family Bank CEO Rebecca Mbithi.

Family Bank registered the growth at a time the rate cap law had been repealed, growing customer deposits by 18 per cent to Sh61 billion while focusing on automation and digitisation that has seen the lender move 80 per cent of transactions online.

Ms Mbithi said the bank will weather the coronavirus storm by focusing on cost containment by encouraging the use of alternative banking solutions to meet customer needs during this period.