Family Bank recorded gross profit growth of 24.3 percent to Kes 1.3 billion in the three months to March 2024, compared to a similar period last year, attributed to high-interest income.
Further, net interest income increased by 19.9 percent to Kes 2.4 billion, supported by a rise in income on government securities and loans and advances, which grew by 44.2 percent and 26.5 percent, respectively.
However, interest expense went up by 47.1 percent to Kes 2 billion.
Speaking after releasing the results, Family Bank CEO Nancy Njau said the lender 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 to our shareholders,” Njau said.
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Additionally, In the period under review, its total assets improved by 10.7 percent to Kes 145.9 billion, buoyed by a 19 percent jump 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.”
Investments in talent development, acquisition, and digitization increased the bank’s operating expenses.
Nevertheless, its 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%.”
