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Family Bank Group has recorded a remarkable KES 2.32 billion Profit Before Tax for the first six months of 2024, reflecting a robust 15.4% increase from the KES 2.0 billion reported during the same period in 2023. This impressive growth comes despite a challenging operating environment, underscoring the bank’s resilience and strategic focus.
The growth in profitability was primarily driven by a significant increase in revenues. Family Bank’s total assets surged by 19.2%, reaching KES 158.3 billion, up from KES 132.8 billion in June 2023. This asset growth was largely fueled by an 18% increase in deposits, which rose from KES 100.8 billion to KES 119 billion.
With additional liquidity at its disposal, the bank expanded its lending portfolio, boosting loans and advances to KES 91.4 billion, compared to KES 86.5 billion in June 2023. Despite the subdued demand for credit due to prevailing macroeconomic conditions, the bank strategically invested in government securities, which saw a 69% increase in this asset class, from KES 24.8 billion to KES 41.9 billion.
Family Bank’s interest income grew by 26.1%, driven by the expansion of its loan book and increased investments in government securities. However, the higher cost of funding during the period, which led to a 46% increase in interest expenses, tempered the net interest income growth, which still rose by 12.7% to close at KES 4.9 billion.
The Group’s diversification strategy also paid off, with non-funded income rising by 20% to KES 2.3 billion, largely attributed to fees and commissions, trade finance, and gains from securities trading.
Operating expenses increased by 15% to KES 4.9 billion, reflecting ongoing investments in technology, talent, and digital transformation efforts.
Commenting on the bank’s performance, Family Bank CEO Nancy Njau stated, “As a Group, our focus in the first half of the year has been on prudent financial management by strengthening our liquidity position while working on satisfying customer needs. The performance of this first half is a testament to the Bank’s agility and resilience in the face of enduring market uncertainties. We continue to prioritize building scalable infrastructure to support the significant balance sheet growth we have experienced over the last few years.”
Family Bank’s total capital and liquidity ratios remained robust, well above regulatory requirements, with the total capital ratio closing at 16.6% against the required 14.5% and the liquidity ratio closing at 42.2% against the required 20%.
