Family Bank posts Kshs 1bn net loss in 2017


Family Bank has posted a 1 billion shillings net loss for the year ending December 2017, compared to the 352 million shillings net profit the lender posted in 2016.

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The loss is on account of a reduction in net interest income which dipped 37.7 percent to 4.38 billion shillings during the period.

The mid-tier lender was unable to withstand the mixed operating environment last year which saw the bank cut its total operating expenses to KES 7.9 billion, down from KES 8.5 billion recorded in 2016.

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Similarly total liabilities also increased marginally by 1.1 percent to KES 57.4 billion, up from KES 56.7 billion realized in 2016.

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As effects of the interest rate cap persists, the bank recorded a reduction in lending as loans and advances were down 39% from KES 10 billion to KES 6.1 billion.

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Net non-performing loans also surged 63% to stand at KES 6 billion up from KES 3.7 billion. However, there was a marginal increase in non-interest income in 2017 which stood at KES 2.2 billion last year compared to KES 2 billion posted a year earlier.

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Family Bank’s loans and advances to its employees, directors, shareholders and associates marginally reduced from KES 3.8 billion in 2016 to KES 3.3 billion in 2017.

Despite this, the bank’s profitability was tainted recording a net loss of KES 1 billion last year, from a net profit of KES 352 million in 2016. No dividend payout has been recommended for shareholders.

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