12-month
Disqus
Echo Network Africa
Faulu
FILE
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Kenya
Old Mutual Group
Rafiki
Sh114.55 million
South Africa
Traders

Faulu Microfinance net earnings hit Sh190 million

Faulu has reported an 82.74 percent jump in profit after tax to Sh190.44 million. The lender’s gross loans to customers increased to Sh19.18 billion in 2018 from Sh17.28 billion, helping grow earnings from fees and commissions on the portfolio to Sh621.19 million.Interest on loans were, however, flat, rising by a razor-thin 0.15 percent to Sh3.57 billion.

The lender’s gross loans to customers increased to Sh19.18 billion in 2018 from Sh17.28 billion. FILE PHOTO | NMG

Micro-lender Faulu’s net profit for 2018 increased by more than three-quarters, partly helped by halving of provisions against bad loans, the country’s second largest microfinancier by market share announced on Wednesday. The lender, controlled by South Africa’s Old Mutual Group, reported an 82.74 percent jump in profit after tax to Sh190.44 million.The lender’s gross loans to customers increased to Sh19.18 billion in 2018 from Sh17.28 billion, helping grow earnings from fees and commissions on the portfolio by 40.28 percent to Sh621.19 million.

Interest on loans were, however, flat, rising by a razor-thin 0.15 percent to Sh3.57 billion.Its earnings were, nonetheless, boosted by a 50.71 percent fall on loan impairments to Sh114.55 million, while staff costs also dropped by Sh74 million, or 7.1 percent, to Sh968.58 million compared with 2017.The reduction in staff and other administrative costs helped the deposit-taking micro-financier contain total operating expenses which rose by a marginal 3.11 percent to Sh4.04 billion.Faulu mobilised Sh2.1 billion more deposits from customers in the 12-month period to Sh18.5 billion compared with Sh16.41 billion2017.“Our future focus as a customer-led retail and traders’ bank is to continue evolving digitally by offering our customers relevant financial solutions,” the micro-financier said.There are 13 microfinance banks in Kenya. Faulu is among three tier-one microlenders including Echo Network Africa (formerly Kenya Women) and Rafiki.

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