Family Bank has announced a net loss of Sh. 259.57 million loss in the first quarter of 2017.
The bank attributed the huge loss to a rise pile of bad loans and shrinking interest income in the wake of caped interest rates.
“We slowed down on lending to focus our efforts in strengthening the liquidity position,” said Family Bank’s CEO David Thuku. “We had to address the significant withdrawals that took a toll on our 2016 performance and also embark on recovery efforts following the hit on our bottom-line.”
The loss was reversal from the Sh. 344.95 million net profit the bank made in the previous year.
Its interest income dropped 43.72 per cent to Sh. 1.68 billion while its loan book contracted by Sh. 12 billion in the period to stand at Sh. 46.64 billion.
Non-interest income went down 27 per cent to Sh. 526.2 million.