amily Bank on Tuesday announced a Sh1 billion net loss for 2016/2017 financial year.
This is perhaps the biggest dip recorded so far as interest rate cap takes toll on banking sector in Kenya.
The lender, which recently announced a restructuring plan that will see it close four branches by June, saw its positive growth of Sh352.2 million in 2016 compound to Sh1 billion loss.
Its loan book shrunk by almost a half to Sh6.1 billion down from Sh10.08 billion the previous year.
The bank’s gross non-performing loan portfolio grew by Sh2.4 billion during the year under review from Sh7 billion in 2016 while customer deposits dropped from Sh2.8 billion to Sh1.5 billion.
Like other lenders in the market, Family Bank has attributed its tribulations to effects of interest cap and tough operational environment brought about by prolonged general elections.
The bank, which attracted public scrutiny in 2016 after being mentioned in the infamous NYS scandal, has since been in the red, sending over 100 employees packing.
Even so, the mid tier lender maintained a minimum statutory ratio of 14.5 per cent.
