Family Bank Posts Sh2.2B Profit Before Tax In First Six Months Of 2024

Family Bank Group has posted a Sh2.32 billion Profit Before Tax in the first six months of 2024 making a remarkable 15.4 percent increase compared to Sh2.0 billion registered in the same period in 2023.

The growth in profitability was mainly driven by an increase in the bank’s revenues amid a tough operating environment.

Total assets increased by 19.2 percent to sh. 158.3 billion up from sh 132.8 billion in June 2023.

The growth was funded through deposits which increased by 18 percent from Sh100.8 billion to Sh119 billion.

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With the additional liquidity, the Bank continued to support the customers with additional lending which saw the loans and advances increase to Sh91.4 billion from Sh86.5 billion in June 2023.

With the muted demand of credit from customers due to the prevailing macroeconomics, the Bank invested the available liquidity in government securities which saw this investment class increase by 69 percent to Sh41.9 billion from Sh24.8 billion.

Interest income grew by 26.1 percent driven by the growth in the loan book and the additional investments in government securities.

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Net Interest income increased by a 12.7 percent to close at Sh4.9 billion.

This growth was muted by the higher cost of funding witnessed during the period which saw a 46 percent 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 percent to Sh2.3 billion.

This was largely driven by the fees and commissions, trade finance and gains from securities trading.

Operating expenses increased by 15 percent to Sh4.9 billion mainly driven by continued investments in technology, people and digital transformation.

“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. 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.

However,the Bank’s total capital and liquidity ratios remained strong, and well above the regulatory requirement.