Banks and other financial institutions are not likely to review their interest rates despite the caps having been removed.
Speaking during the release of Family Bank’s third-quarter results Family Bank chairman Wilfred Kiboro said removal of the interest rates caps will only provide a better room for negation between banks and borrowers.
After President Uhuru Kenyatta signed the Finance Bill 2019 into law, talks have been rife over the impending increase of lending rates.
Kiboro noted that family bank aims to become a tier-one bank.
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“Our long term objective is to become a tier-one bank. We are much focused and clear that we will become exactly that.” Noted Kiboro.
Mr Kiboro added that the bank expects minimal movement in the financial sector as majority lenders will not review their rates.
The Family Bank CEO Rebecca Mbithi said the bank earnings before tax hit sh1.01billion.
This indicates a tremendous growth of 273 percent for Q3’2019 this is equivalent to a growth of sh738.2 million compared to sh269.9 million posted in a similar period last year.
The Family Bank announces making 1.01 billion shillings in pretax profit during the first nine months of this year, driven by higher interest and non-interest income.
The net interest margin grew by 16.7 percent from 3.1 billion to 3.6 billion, attributable to a tremendous expansion of the loan book and a 12.2 percent decrease in interest expense.
Non-interest income also grew by 10.6 per cent to 2.1 billion shillings.
Gross non-performing loans rose by 100 million shillings to 8.28 billion shillings. This saw the lender’s non-performing loans exposure increase 3.9 percent to 318 million shillings.
