Family Bank has recorded a 25 per cent growth in net profit to KSh910.5 million. This is a growth from the KSh685.3 million in the first quarter of 2023.
It has also reported a profit before tax increase growth of KSh1.3 billion, a growth of 24.3 per cent as compared to the same period last year.
Family Bank CEO, Nancy Njau said profit growth was fueled by higher interest income and non-funded income.
Net interest income expanded by 19.9 per cent to reach KSh2.4 billion during the quarter, up from KSh2 billion reported in the corresponding period last year. During the review period, total assets surged by 10.7 per cent to reach KSh 145.9 billion. This growth was funded by a 19 per cent increase in customer deposits, rising from KSh92.7 billion to KSh110.43 billion.
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The bank strategically directed these funds toward customer loans and advances, which expanded by 4 per cent to KSh87.44 billion.
Additionally, further investments were made in government securities, which increased by 29 per cent to KSh32.7 billion. Total assets also increased by 10.7 per cent to close at KSh145.9 billion for the period under review.
However, interest expense went up by 47.1 per cent to KSh2 billion. The increase is attributed by the lender to the prevailing macro-economic conditions, where interest rates have been steadily climbing. The lender also reported ongoing investments in talent development, acquisition, digitisation, and operational efficiency, resulting in a 22.5per cent increase in the bank’s operating expenses.
“The bank remains resilient amid the tough operating environment. We remain committed to supporting our customer needs, investing in our workforce and optimising our operational efficiencies. This will ensure long term sustainable value creation to our shareholders,” said Nancy Njau.
According to her statement, the bank remains committed to implementing its income diversification strategy, which yielded a 29.7 per cent increase in non-funded income, reaching KSh1.3 billion.
The slight increase of 2.8 per cent in total non-performing loans reflects the current operating conditions. Meanwhile, the bank’s compliance with statutory ratios remains robust, with a total capital ratio of 16.5 per cent and a liquidity ratio of 43 per cent, surpassing the minimum statutory requirement of 20 per cent.
By Frank Mugwe
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