Family Bank Group has posted a Sh1.3 billion profit before tax for the period ended March 31, 2024, representing a 24.3% growth from a similar period last year.
The growth was mainly driven by an increase in interest income and non-funded income and an expansion of the balance sheet given strategic investment in secure and stable investment avenues and effective asset management even as the economy continued to grapple with the adverse effects of high inflation.
“The bank remains resilient amid the tough operating environment. We remain committed to supporting our customer needs, investing in our workforce and optimizing our operational efficiencies. This will ensure long term sustainable value creation to our shareholders,” said Family Bank CEO Nancy Njau.
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Total assets increased by 10.7% to close at Sh145.9 billion for the period under review – this was funded through a 19% increase in customer deposits from Sh92.7 billion to Sh110.43 billion. The funds were invested in lending to customers through loans and advances which grew by 4% to Sh87.44 billion. Further investments were made in government securities which increased by 29% to Sh32.7 billion.
Net interest income grew by 19.9% to close at Sh2.4 billion in the quarter from Sh2 billion recorded in the same period last year. This was supported by an increase in income on government securities and loans and advances which grew by 44.2% and 26.5% respectively. However, interest expense increased by 47.1% to close at Sh2 billion. The increase was in line with the current macro-economic conditions where interest rates have been on the rise.
The lender continued to execute the income diversification strategy whose results were evident through a 29.7% in non-funded income to close at Sh1.3 billion. It also continued to invest in talent development and acquisition, digitization and operational efficiency, which saw its operating expenses increase by 22.5%.
Additionally, it increased the provisions for loans and advances by 28.8% to Sh209.1 million from to Sh162.5 million recorded in the first quarter of 2023.
Total non-performing loans increased marginally by 2.8% reflecting the current operating conditions . The Bank’s statutory ratios compliance position remained strong with the total capital ratio closing at 16.5 % while the liquidity ratio stood at 43% against the minimum statutory ratio of 20%.
