Family Bank Group has posted a KES. 1.3 billion Profit Before Tax for the period ended 31st March 2024, representing a 24.3% 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 and effective asset management even as the economy continued to grapple with the adverse effects of high inflation.
Total assets increased by 10.7% to close at KES 145.9 billion for the period under review. This was funded through a 19% increase in customer deposits from KES 92.7 billion to KES 110.43 billion. The funds were invested in lending to customers through loans and advances which grew by 4% to KES 87.44 billion. Further investments were made in government securities which increased by 29% to KES 32.7 billion.
Net interest income grew by 19.9% to close at KES 2.4 billion in the quarter from KES 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% and 26.5% respectively. However, interest expense increased by 47.1% to close at KES 2.0 billion. The increase was in line with the current macroeconomic 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% in non-funded income to close at 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 customer needs, investing in our workforce, and optimizing our operational efficiencies. This will ensure long-term sustainable value creation for 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%. Additionally, the Group increased the provisions for loans and advances by 28.8% to KES 209.1 million from KES. 162.5 million recorded in the first quarter of 2023.
Total non-performing loans increased marginally by 2.8% reflecting the current operating conditions. The Bank’s statutory ratios compliance position remained strong with the total capital ratio closing at 16.5 % while the liquidity ratio stood at 43% against the minimum statutory ratio of 20%.
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