Family Bank Group has announced a profit before tax of KES 2.32 billion for the first half of 2024, marking a substantial 15.4 percent increase from the KES 2.0 billion reported in the same period of 2023.
This growth in profitability was driven primarily by increased revenues, despite a challenging operating environment. The bank’s total assets surged by 19.2 percent, reaching KES 158.3 billion, up from KES 132.8 billion in June 2023. This increase in assets was supported by a rise in deposits, which grew by 18 percent from KES 100.8 billion to KES 119 billion. The additional liquidity enabled the bank to extend more loans, with loans and advances climbing to KES 91.4 billion from KES 86.5 billion in June 2023.
However, with subdued credit demand due to macroeconomic conditions, the bank invested surplus liquidity into government securities, which saw a significant 69 percent increase to KES 41.9 billion from KES 24.8 billion.
Interest income grew by 26.1 percent, bolstered by the expanded loan book and increased investments in government securities. Net interest income saw a 12.7 percent increase, reaching KES 4.9 billion. This growth was somewhat tempered by a 46 percent rise in interest expense, reflecting the higher cost of funding experienced during the period.
The Group’s income diversification strategy yielded notable results, with non-funded income rising by 20 percent to KES 2.3 billion. This growth was largely driven by increased fees and commissions, trade finance, and gains from securities trading.
Operating expenses rose by 15 percent to KES 4.9 billion, mainly due to ongoing investments in technology, human resources, and digital transformation initiatives.
Family Bank CEO Nancy Njau commented, “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 to the Bank’s agility and resilience in the face of enduring market uncertainties. We continue to prioritize building scalable infrastructure to support the significant balance sheet growth we have experienced over the last few years.”
The bank’s total capital and liquidity ratios remain robust and well above regulatory requirements, with the total capital ratio closing at 16.6 percent compared to 14.5 percent and the liquidity ratio at 42.2 percent versus 20 percent.