Family Bank records Sh2.6bn pre-tax profit as it increases lending

By: OTIATO GUGUYU

Family Bank has reported a Sh2.6 billion profit before taxes for nine months ending in September 2015. The profit has been boosted by increased lending.

The Bank’s focus on small and medium enterprise lending and personal loans has resulted to a significant jump in its loan book from Sh37.9 billion to Sh52.8 billion.

According to the bank, the 32.8 per cent jump in earnings as compared to a similar period in 2014 was also supported by aggressive growth in deposits and higher transaction income.

“The growth was buoyed by a significant jump in net interest income to slightly over Sh5 billion from Sh3.9 billion as a result of an expanded loan book which grew by 39 per cent,” Family Bank said in a statement sent to media houses.

The bank is seeking to boost its capital through a bonds issue and recently raised Sh2 billion from the local market which is already trading at the Nairobi Securities Exchange.

The bank’s first tranche of its Sh10 billion bond issue sought to raise Sh4 billion but its management was upbeat of an oversubscription and indicated it was prepared to accept Sh2 billion more through the green shoe option.

SOURCE: DAILY NATION