Family Bank Group’s Profit Before Tax for the nine months of 2024 grew by 8% to Ksh3.26 billion, up from Ksh3.02 billion in the same period last year. Profit after taxation rose to Ksh2.3 billion, up from Ksh2.1 billion realised the previous year. This growth was driven by a significant increase in income across various revenue streams.
Total interest income surged by 29% to KES 14.6 billion, buoyed by a 20% rise in income from loans and advances, which reached Ksh10.6 billion. The loan book expanded by 11.3% to Ksh94.2 billion. Investments in government securities yielded more with a resultant 65% jump in interest income attributable to higher yields and growth of the portfolio. Total assets grew by 16% to Ksh163.2 billion from KES 141 billion in September 2023, reflecting the Group’s continued growth trajectory.
Non-funded income rose by 13.2% to Ksh3.3 billion, with income from other fees and commissions increasing by 14.5%. This contributed to an 11% increase in total operating income, supporting the bottom-line growth.
“Our focus for this year has been to accelerate business growth and optimize value creation across all areas of operation,” said Family Bank CEO, Ms Nancy Njau. “The growth in profit underscores our unwavering commitment to delivering on strategic priorities while placing our customers at the core of our efforts. By aligning our investments with the evolving customer needs and driving operational efficiencies, we continue to position the Bank for sustained growth as we offer our customers superior financial products and services.”
Ms Njau said Family Bank continued its investments in talent development, technology and digital transformation which saw operating expenses for the period rise by 12.4% to Ksh7.7 billion. These investments have started yielding fruit, she said, and expects the results to show in the short to medium term. Meanwhile, loan loss provisions expense slowed down during the period by 40.6% compared to previous year as the bank enhanced collection efforts and maintained a healthy portfolio despite the tough operating environment.
“As a Bank, we enhanced our buffers on the back of our improved portfolio metrics. We continue to work hand-in-hand to support all our customers including those who may be facing any challenges in meeting their obligations,” she added. The Bank’s liquidity and total capital ratios stands strong at 43.9% and 16.5% well above the regulatory requirements of 20% and 14.5% respectively.
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