Family Bank Group’s pretax profit surged by 131.6 percent to Ksh.3.3 billion for the year ended December 31, 2021.
The growth in earnings was largely driven by an increase in interest income, marginal growth in interest expenses and operating expenses coupled with a reduction in the loan loss provisions.
“2021 was a recovery year for the Bank. Our overall growth demonstrates the Group’s resilience and recovery of our customers from the COVID-19 pandemic effects. In 2021, we continued to support our customers, increased and accelerated loan disbursements and achieved growth in all our key parameters. We continue to provide innovative products and superior customers experience which has seen our customers recognize us as the Best Bank in Customer Responsiveness and Digital Experience in 2022 during Kenya Bankers Awards,” said Family Bank Chief Executive Officer Rebecca Mbithi.
The Group’s total assets grew by 23 percent to close at Ksh.111.7 billion driven by net loans and advances which expanded by 18.2 percent to Ksh.66.9 billion while investment in government securities increased by 45 percent to Ksh.24.7 billion on account of improved liquidity.
Customer deposits increased by 17 percent to Ksh.81.9 billion.
Net interest income grew by 20.8 percent to Ksh.7.8 billion from Ksh.6.4 billion in the Year 2020.
Total non-funded income grew by 12.9 percent to Ksh.3.0 billion with income from other fees and commissions registering a growth of 19.7 percent to stand at Ksh.2.1 billion despite the continued zero-rating of mobile transaction offerings.
The Group’s operating expenses decreased by 2.8 percent to Ksh.7.5 billion from Ksh.7.7 billion mainly driven by prudent management of operating costs and a reduction in loan loss provisions.
On the back of the strong performance, the directors have proposed Ksh.1.1 billion dividend pay-out subject to the shareholders’ approval during the Annual General Meeting to be held on April 29, 2022.