Family Bank has seen its net loss widen to 748 million shillings during the first nine months of this year after total interest income fell by nearly half to 4.9 billion shillings while total operating expenses marginally reduced to 5.5 billion shillings.
The lender’s financials however indicate that it could be recovering, with loans and advances as well as customer deposits tripling over the last nine months.
Family Bank plunged into losses in the first quarter of this year after loans and advances fell from 9.5 billion shillings to 1.5 billion shillings in just three months while customer deposits reduced from 2.8 billion shillings to 311 million shillings.
This was after the lender experienced challenges last year that saw its liquidity ratio fall to 14 percent in December 2016, which is lower than the statutory minimum of 20 percent.
Since then, the bank plunged into losses posting 258 million shillings loss during the first three months, then 498 million shillings in half year loss and has widened to 748 million shillings loss during the first nine months of this year.
Despite the widened losses, the lender’s financials over the last nine months indicate improved performance with loans and advances increasing from 1.5 billion shillings in March this year to 4.3 billion shillings as at September this year.
Net interest income has also nearly tripled from 1 billion shillings in March this year to 2.9 billion shillings in September.
However, when compared to a year ago, it plunged nearly by half.
Family Bank says the decline in the net interest income was due to the capping of interest rates, reduced lending and efforts by the lender to strengthen its liquidity.
The bank’s gross non-performing loans have maintained an upward trend increasing to 8.19 billion shillings as at September this year from 6.4 billion shillings at a similar period last year.
Family Bank blames this on the slowdown in economic activities during the prolonged electioneering period. This prompted the bank to book 569 million shillings for loan loss provision.