A client has written to Kenyanbusinessfeed.com over what he considers as extra charges levelled against his account by Faulu Bank.
“I am a Faulu bank customer, I took my initial loan in the lender in June 2019. It was a 7-year loan and they deducted insurance fee around of around Sh50k. I went for a top up in March 2021 and again they deducted about Sh50k of insurance fee. My question is like other banks Equity or KCB they usually return the previous insurance fee after top up, but Faulu seems not to be doing the same, where do they take the money if they don’t refund, I have called and followed up severally but no response. Please highlight for me to the management, thanks a lot,” the client wrote.
In 2020, the lender which is part of UAP Old Mutual Group, posted a 73.3 per cent increase in net profit for the year ended December 31.
Profit after tax edged up to Sh330.1 million compared to Sh190.4 million same period in 2018.
The bank attributed the strong performance to a 20 per cent increase in interest income, improved operational efficiencies and growth of its loan book, from Sh19.18 billion in 2018 to Sh21.05 billion in 2019.
Operational and administrative expenses during the period declined by four per cent largely as a result of a system upgrade implemented in 2019.
The bank’s non-performing loans ratio improved from 13.07 per cent in December 2018 to 12.1 per cent in December 2019 primarily as a result of improved underwriting and loan collection.
Total assets grew nine per cent from Sh27.2 billion to Sh29.7 billion driven mainly by 10 per cent growth of the loan book.
In addition, customer deposits rose eight per cent from Sh18.5 billion in 2018 to Sh20.1 billion.
“We continue to make strategic investments in improving the overall customer experience. A sharp focus on creating value for our customers translated into a strong performance in 2019,” managing director Apollo Njoroge said.
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