Family Bank Registers KES 1.3 Billion Profit in First Quarter of 2024

By :Anne Nyambura

Family Bank Group has recorded a KES 1.3 billion profit before tax for the first quarter of 2024, marking a 24.3% increase from the same period last year.

This growth was driven primarily by higher interest income and non-funded income, as well as strategic investments in secure and stable avenues and effective asset management, despite the ongoing challenges posed by high inflation.

Total assets rose by 10.7%, reaching KES 145.9 billion by the end of the period. This increase was supported by a 19% growth in customer deposits, which rose from KES 92.7 billion to KES 110.43 billion.

These funds were used to increase lending to customers, with loans and advances growing by 4% to KES 87.44 billion. Investments in government securities also saw a significant rise of 29%, reaching KES 32.7 billion.

Net interest income increased by 19.9% to KES 2.4 billion, up from KES 2.0 billion in the same quarter last year. This was bolstered by a 44.2% increase in income from government securities and a 26.5% rise in income from loans and advances.

However, interest expenses rose by 47.1%, totaling KES 2.0 billion, reflecting the current macroeconomic conditions and rising interest rates.

The bank’s income diversification strategy also showed positive results, with non-funded income increasing by 29.7% to KES 1.3 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 customers, investing in our workforce, and optimizing operational efficiencies to ensure long-term sustainable value creation for our shareholders,” said Family Bank CEO Nancy Njau.

The Group continued to invest in talent development, digitization, and operational efficiency, leading to a 22.5% increase in operating expenses.

Additionally, provisions for loans and advances rose by 28.8% to KES 209.1 million, up from KES 162.5 million in the first quarter of 2023.

Total non-performing loans increased marginally by 2.8%, reflecting the challenging operating conditions.

The bank maintained strong compliance with statutory ratios, with a total capital ratio of 16.5% and a liquidity ratio of 43%, well above the minimum statutory requirement of 20%.