Family Bank’s net profit for the full-year to December has improved by a 10th to Sh1.98 billion on the back of increased lending to customers following an aggressive expansion campaign.
The lender on Tuesday announced that its net earnings last year grew from the previous period’s Sh1.8 billion as its net loans rose 47.3 per cent to Sh55.9 billion.
This high lending saw the bank’s total interest income expand 40.8 per cent to Sh10 billion, a majority of which came from loans and advances to its more than 1.7 million clients.
“The great performance by the bank, though in a very challenging macro-economic environment, vindicates not only our growth strategy but the robust performance culture embraced by staff,” Mr Wilfred Kiboro, the bank’s chairman, said in a statement.
“We are on course to achieve even greater results as we consolidate our alternative business channels including mobile banking and agency banking among others.”
The lender’s customer deposits grew by Sh15.6 billion to hit Sh62.7 billion.
Family Bank’s total assets as at the end of last year stood at Sh81.3 billion, having grown by 31.5 per cent, while its total liabilities went up by Sh18.1 billion to Sh69.2 billion. The lender’s total shareholders’ funds grew by 12 per cent from Sh10.6 billion in 2014 to close last year at Sh11.9 billion.
Family Bank, which has set a target of attaining tier one status in the short term, says the growth in earnings is as a result of its continued focus on small and medium enterprise lending and personal loans.
To enhance its performance, the bank is in the process of expanding its branch network with plans to open 10 new outlets this year to hit a target of 100 by the end of December.
The tier-two lender last month launched its 91st branch in Wote Town, Makueni, barely three months after opening three other outlets in Mlolongo, Maua and Kahawa West.