Family Bank Group has posted a Ksh.2.32 billion Profit Before Tax in the first six months of 2024 a 15.4% jump from Ksh.2 billion same period in 2023.
The profit surge was mainly driven by an increase in the bank’s revenues amid a tough operating environment.
Total assets increased by 19.2% to Ksh.158.3 billion up from Ksh.132.8 billion in June 2023. The growth was funded through deposits which increased by 18% from Ksh.100.8 billion to Ksh.119 billion.
“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 of the Bank’s agility and resilience in the face of enduring market uncertainties.
Loan Provision Uptick
We continue to prioritise building scalable infrastructure to continue supporting the significant balance sheet growth we have experienced over the last few years.” said Family Bank CEO Nancy Njau.
Also Read: Family Bank Profit up 24.3% to Ksh.1.3 Billion in Q1 2024
Loan advances surged to a record Ksh.91.4 billion from Ksh.86.5 billion in June 2023. Investments in government securities like Treasury Bonds and Bills increased by 69% to Ksh.41.9 billion from Ksh.24.8 billion.
Interest income grew by 26.1% driven by the growth in the loan book and the additional investments in government securities.
Net Interest income increased by a 12.7% to close at Ksh.4.9 billion. This growth was muted by the higher cost of funding witnessed during the period which saw a 46% increase in interest expense in line with the high cost of funding witnessed in the first half of 2024.
The Group’s income diversification strategy proved successful with non – funded income rising notably by 20% to Ksh.2.3 billion. This was largely driven by the fees and commissions, trade finance and gains from securities trading.
Operating expenses increased by 15% to Ksh.4.9 billion mainly driven by continued investments in technology, people and digital transformation.
The Bank’s total capital and liquidity ratios remained strong, and well above the regulatory requirement with total capital ratio closing at 16.6% against 14.5% and liquidity ratio closing at 42.2% against 20%.
