Family Bank Group has posted a Ksh. 1.3 billion Profit Before Tax for the period ended 31st March 2024, representing a 24.3 per cent growth from a similar period last year.
This growth in Profit Before Tax was mainly driven by an increase in interest income and non-funded income and an expansion of the balance sheet given strategic investment in secure and stable investment avenues.
However,10.7 per cent to close at sh 145.9 billion total assets increased for the period under review.
This was funded through a 19 per cent increase in customer deposits from sh 92.7 billion to sh 110.43 billion.
The funds were invested in lending to customers through loans and advances which grew by 4 per cent to sh 87.44 billion.
Further investments were made in government securities which increased by 29 per cent to sh 32.7 billion.
Net interest income grew by 19.9 per cent to close at sh 2.4 billion in the quarter from sh 2.0 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 per cent and 26.5 per cent respectively.
However, interest expense increased by 47.1 per cent to close at sh 2.0 billion.
The increase was in line with the current macro-economic conditions where interest rates have been on the rise.
The Bank continued to execute the income diversification strategy.
The results of this were evident through a 29.7 per cent in non-funded income to close at sh1.3 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 the Bank’s operating expenses increase by 22.5 per cent.
Additionally, the Group increased the provisions for loans and advances by 28.8 per cent to sh 209.1 million from to sh 162.5 million recorded in the first quarter of 2023. .
Total non-performing loans increased marginally by 2.8 percent reflecting the current operating conditions .
The Bank’s statutory ratios compliance position remained strong with the total capital ratio closing at 16.5 per cent while the liquidity ratio stood at 43 per cent against the minimum statutory ratio of 20 per cent.
