Family Bank Group has reported a 38% increase in profit after tax for the year 2024, marking a significant achievement in its financial performance. This growth underscores the bank’s resilience and strategic initiatives amid a dynamic economic environment.
Financial Performance Highlights
In the first half of 2024, Family Bank recorded a 17.1% rise in profit after tax, reaching KES 1.7 billion, up from KES 1.4 billion in the same period of 2023. This performance was driven by a 12.7% growth in net interest income to KES 5 billion and a 20% increase in non-funded income to KES 2.3 billion. Total assets expanded by 19.2% to KES 158.3 billion, supported by an 18% rise in customer deposits to KES 119.1 billion. The loan book also grew by 7.9% to KES 91.4 billion.
For the nine months ending September 2024, the bank’s profit before tax rose by 8% to KES 3.26 billion from KES 3.02 billion in the same period of the previous year. Total interest income surged by 29% to KES 14.6 billion, with income from loans and advances increasing by 20% to KES 10.6 billion. Investments in government securities contributed to a 65% jump in interest income. Total assets grew by 16% to KES 163.2 billion, and non-funded income rose by 13.2% to KES 3.3 billion.
Strategic Initiatives and Investments
Family Bank’s CEO, Nancy Njau, attributed the robust performance to prudent financial management and strategic investments. The bank focused on strengthening its liquidity position while meeting customer needs, investing in government securities, and diversifying income streams through fees, commissions, trade finance, and securities trading.
Additionally, the bank continued to invest in talent development, technology, and digital transformation. Operating expenses increased by 12.4% to KES 7.7 billion during the nine-month period, reflecting these investments. Loan loss provisions decreased by 40.6% due to enhanced collection efforts and a healthier loan portfolio.
Capital and Liquidity Position
Family Bank maintained strong liquidity and capital positions, with liquidity and total capital ratios standing at 43.9% and 16.5%, respectively, well above the regulatory requirements of 20% and 14.5%. This financial strength positions the bank to support its customers effectively, even amid economic challenges.
Conclusion
Family Bank Group’s impressive 38% surge in profit after tax for 2024 reflects its strategic focus on revenue diversification, prudent financial management, and investment in growth initiatives. As the bank continues to navigate the evolving financial landscape, it remains committed to delivering value to its stakeholders and supporting economic development.
