Family Bank Group has recorded a Sh3.7 billion profit before tax for the full year ended December 31, 2022, a 12.2 % growth compared to Sh3.3 billion posted in 2021.
The revenue growth was catapulted by double-digit growth in revenues, customer loans and prudent investment decisions by the lender.
Total revenues increased by 10.6% to Sh11.9 billion driven by 10.7% growth in net interest income that stood at Sh8.6 billion in the period under review largely as a result of exponential growth in interest income from loans and that of government securities which grew by 19.2% and 29.9% respectively in the period under review.
Customer loans grew by 21.6 % to close at Sh81.4 billion while net interest income increased by 10.7% to Sh8.6 billion. On the balance sheet side, total assets expanded by 15% from Sh111.7 billion to close at Sh128.5 billion in 2022. Non-funded income grew by 10.6% to Sh3.4 billion.
“In 2022, we focused on diversification of product offerings through the financing of second-hand importation and innovative finance for MSMEs in the water and sanitation sector. Through our fundraising partners, having raised over $56 million, we have been able to increase our lending to various MSMEs as well as climate-friendly investments and women-led businesses in education, health, agriculture, energy and manufacturing sectors,” said Family Bank CEO Rebecca Mbithi.
Ms Mbithi noted that the revenue growth is an affirmation that the lender’s diversification strategy continues to pay off, amidst the complex operating environment brought about by the recent General Elections, persistent drought, impact of the Ukraine-Russia War and post-pandemic recovery.
“We are confident of our performance in 2023 having put in place an aggressive strategy that prioritises heavy investment in digital banking and roll out of agri-finance products as we seek to strengthen our balance sheet through the adoption of additional core capital and long-term debt while driving operational efficiencies across our businesses,” she said.
In 2022, customer deposits grew by 8.5% to close at Sh88.9 billion compared to Sh 81.9 billion recorded in a similar period in 2021. Staff costs grew by 33% due to the Group’s investment in training staff and attracting top-notch talent to support its aggressive strategy and to deliver exceptional service to the customers.
There was a significant reduction in the Group’s loan loss provisions by 35.6% to settle at Sh495.1 million against Sh768.1 billion recorded in 2021. Net non-performing loans increased by 18.4% to close at Sh5.6 billion in 2022 compared to Sh4.8 billion in 2021.
The Bank has declared a total dividend of Sh0.62 per share. Shareholders’ funds grew by 3.3% to close at Sh16.1 billion. The Group’s Profit After Tax for 2022 stood at Sh2.2 billion. The Bank’s capital and liquidity ratios remain strong, adequately above the regulatory requirement.
Recently, the Bank has acquired a Sh3.9 billion ($30 million) lending facility for trade and Small and Medium Enterprises (SME) from the African Development Bank Group (AFDB) to promote onward lending to SMEs in health, renewable energy and agriculture and reduce the SME finance gap, especially for women-led businesses.
