Family Bank has turned around from loss making to a Ksh187.8 million net profit in the nine months ending September 30, 2018.
In 2017 the same period, the lender made a Ksh743.1 million loss.
The turnaround is attributed to credit uptake through the revamped PesaPap, according to tha management.
PesaPap surpassed the Ksh500 million mark in loans disbursed to both its customers and non-customers within a three-month period.
The mobile application which was launched at the end July 2018, recorded an average of 50,000 transactions per month between August and November 2018.
The revamped PesaPap Wallet that also includes a savings and investment module registered over 44,000 new users in that same period.
Net loans and advances to customers grew by Ksh190.8 million to close at Ksh44.6 billion while net interest income grew by 5.5 per cent to Ksh3.1 billion compared to Ksh2.9 billion in the same period under review in 2017.
Interest from government securities also grew by 8.1 per cent to close at Ksh567.9 million while
cost containment efforts resulted in a decrease in the total operating expenses by 15.4 per cent closing the period at Ksh4.7 billion.
Staff costs significantly reduced by 19.3 per cent to Ksh1.3 billion compared to Ksh1.6 billion recorded in September 2017.
“We continue to refine our business model to drive cost management, lean processes and product optimization to provide value to our customers and to our shareholders. As witnessed in our financial results this year, the strategy continues to improve our bottom line having consistently posted profit this year,” said Family Bank Acting Managing Director and Chief Financial Officer Charles Njuguna.
Customer deposits marginally decreased by 0.5 per cent and stood at Ksh47.9 billion as at September 2018, while gross non-performing loans and advances decreased by Ksh6.5 million as at September 2018 compared to same period under review in 2017.