Family Bank Group has posted a Ksh3.02 billion Profit Before Tax for the period ended September 30, 2023.
During the period, total assets increased to Ksh140.97 billion a 9.6% increase from Ksh128.5 billion reported in September 2022. The increase in the total assets was primarily driven by growth in customer deposits which rose by 16.6% to Ksh108.1 billion from Ksh93.2 billion reported same period in FY’22.
The bank continued to lend which saw the loans and advances increase by 6% to Ksh84.6 billion. Investment in government securities increased by 21% to close at Ksh30.3 billion.
Interest income grew by 18% to Ksh11.34 billion while interest expenses grew by 34.6% to close at Ksh4.4 billion. The faster growth in interest expense was mainly driven by the general increase in funding costs for deposits and borrowings in line with the tight monetary policies by the government and increased government borrowing costs in the domestic market. The increase in the interest income and the higher than the increase in interest expense saw the net interest income increase by 10.8%.
Total non-funded income increased by 5.6% to close at Ksh2.9 billion for Q3’2023 compared to Kdsh2.8 billion recorded during the same period last year. The Group’s prudential provisioning against the loan book increased by 110% as the Bank took a cushion against future defaults in line with the challenging macroeconomic conditions. This saw the Group’s loan loss provision charge increase to Ksh989.4 million during the period.
Other operating expenses and staff costs saw an increase of 23.8% and 22.3%. The staff costs were mainly driven by an increase in the Group’s employees’ headcount and continuous investments in the training of employees.
“Our strategy continues to bear fruit for our customers and our shareholders. Our statutory and prudential ratios have significant buffers against the minimum requirements which positions the Group to continue taking advantage of opportunities as they arise. Our objective is to grow both organically and inorganically as we evolve to become a leading bank anchored on customer centricity, investment in innovation and technology and enhanced employee experience,” said Family Bank CEO Rebecca Mbithi.
The Bank’s statutory ratios compliance position remained strong with the total capital ratio closing at 18.3 % while the liquidity ratio stood at 43.4% against the minimum statutory ratio of 20%.