Zachary Ochuodho @zachuodho
Family Bank has bounced back to profitability after it reported an after-tax profit of Sh101.5 million in the first half of the financial year 2018.
The financial institution attributed the improved performance to cost control measures, digital banking and growth in deposits during the period under review.
Family Bank Managing director and chief executive, David Thuku said the cost control measures resulted in a decline in the total operating expenses by 11.9 per cent closing the period at Sh3.1 billion.
He said the half-year profit was a remarkable turnaround given the fact that during the same period last year, the bank registered a loss of Sh492.4 million.
“We have remained focused on operational efficiency and revenue optimisation as key pillars of our business recovery strategy over the first half of 2018,” Thuku said.
He said the focus on cost control has borne fruit as indicated by the remarkable rebound to profitability and consistent growth over the six months period. Thuku said the bank will continue to drive its internal efficiencies through optimisation of non-traditional channels such as mobile banking and agency banking as well as the alignment of its business value propositions to the needs of our customers.
“We are optimistic of a stronger second half riding on the traction on our digitization strategy and support from our customers,” Thuku said in the bank’s financial report.
The total non-interest income grew by 11.9 per cent to Sh1.25 billion compared to Sh1.1 billion in the same period under review last year.