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NAIROBI, Kenya, May 28 – Family Bank Group posted Sh728.8 million Profit Before Tax for the first quarter of 2021. This is a 71.3 percent increase in earnings compared to the Sh425.6 million reported in Q1’2020.
Net interest income rose by 27.2 percent to Sh1.8 billion supported by the increased lending as the loan book expanded by 15.9 percent to Sh61.4 billion, which is Sh8.4 billion growth from Q1, 2020. Customer deposits grew by 18.3 percent quarter on quarter to close at Sh72.5 billion while total assets grew by 14.9 percent to Sh94.8 billion.
Non-funded income marginally decreased from Sh714.9 million to Sh711.2 million at the back of the waiver of mobile banking charges to customers. During the same period, operating expenses marginally increased by 4.6 percent to Sh1.8 billion.
“We continue to execute our 2020 – 2024 strategy which positions the bank as a strong SME bank. Our strategy execution is on course, and we remain optimistic that the operating macro-economic environment will improve in the remaining part of the year. We are happy that a significant number of customers, who were affected by COVID-19 pandemic in 2020, are slowly getting back on track as we continue to support their growth,” said Family Bank CEO Rebecca Mbithi.
Loan loss provisions rose to Sh360.1 million to support our customers against the adverse economic effects of the pandemic. The Group recorded a decline of 4.7 percent in net non-performing loans for the three months under review showing the resilience of our clients.
The Bank’s core capital grew by 11 percent to stand at Sh12.6 billion compared to Sh11.4 billion in Q1’2020. Liquidity remained significantly above the minimum requirement of 20 percent at 32.4 percent.
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