Family Bank rides loan growth to higher profits

Family Bank has announced a Sh2.6 billion after tax profit for nine months ending in September 2015.

The bank attributed the 32.8 per cent jump in earnings compared to the previous period to increased lending.

Its focus on small and medium enterprise lending and personal loans has resulted to a significant jump in its loan book from S7.9 billion to Sh52.8 billion.

The results were 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 S.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 bond issue and recently raised Sh2 billion from the local market which is already trading at the Nairobi Securities Exchange.

SOURCE: BUSINESS DAILY