- Advertisement -

Family Bank First Quarter Pre-Tax Profit Hits Sh1.3B

This growth was mainly driven by an increase in interest and non-funded income

- Advertisement -

Family Bank Group has posted a Ksh1.3 billion profit before tax for the period ended 31st March 2024, representing a 24.3% growth from a similar period last year. This growth was mainly driven by an increase in interest and non-funded income and an expansion of the balance sheet given strategic investment in secure and stable instruments.

Also, effective asset management even as the economy continued to grapple with the adverse effects of high inflation boosted revenues. Total assets increased by 10.7% to close at Ksh145.9 billion for the period under review. This was funded through a 19% increase in customer deposits from Ksh92.7 billion to Ksh110.43 billion.

The funds were invested in lending to customers through loans and advances which grew by 4% to Ksh87.44 billion. Further investments were made in government securities which increased by 29% to Ksh32.7 billion.

Net interest income grew by 19.9% to close at Ksh2.4 billion in the quarter from Ksh2.0 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 KES 2.0 billion. The increase was in line with the current macro-economic conditions where interest rates have been on the rise.

> Bold and Visionary Founders Benefit From Accelerator Programme

Family Bank continued to execute the income diversification strategy. The results of this were evident through a  29.7% growth in non-funded income to close at Ksh1.3 billion.

“Our first-quarter results are a significant improvement from our performance last year. 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.

The Group also continued to invest in talent development and acquisition, digitization and operational efficiency, which saw operating expenses increase by 22.5%. Additionally, the Group increased the provisions for loans and advances by 28.8% to Ksh209.1 million from to Ksh162.5 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%.

> Foreign Brands Dominate Consumer Tastes in Africa

- Advertisement -
BT Correspondent
BT Correspondenthttp://www.businesstoday.co.ke
editor [at] businesstoday.co.ke
- Advertisement -
Must Read
- Advertisement -
Related News
- Advertisement -


Please enter your comment!
Please enter your name here