Family Bank Group has reported a Profit Before Tax (PBT) of KES 3.26 billion for the nine months ending September 2024, marking an 8 percent increase from KES 3.02 billion recorded in the same period last year. This robust performance highlights the bank’s continued growth trajectory amid a challenging economic environment.
The impressive profit growth was driven by significant increases across multiple revenue streams. Total interest income surged by 29 percent to KES 14.6 billion, supported by a 20 percent rise in income from loans and advances, which stood at KES 10.6 billion. The loan book expanded by 11.3 percent to KES 94.2 billion during the period. Additionally, investments in government securities yielded strong returns, contributing to a 65 percent increase in interest income from these assets, reflecting both higher yields and portfolio growth.
Family Bank’s total assets grew by 16 percent, reaching KES 163.2 billion, up from KES 141 billion in September 2023. Non-funded income also played a significant role in the bank’s performance, rising by 13.2 percent to KES 3.3 billion, with fees and commissions income increasing by 14.5 percent . This contributed to an overall 11 percent growth in total operating income.
Family Bank CEO Nancy Njau attributed the performance to a strategic focus on accelerating business growth and optimizing value creation. “The growth in profit underscores our unwavering commitment to delivering on strategic priorities while placing our customers at the core of our efforts. By aligning our investments with the evolving customer needs and driving operational efficiencies, we continue to position the Bank for sustained growth as we offer superior financial products and services,” Njau said.
The Bank has been investing heavily in talent development, technology, and digital transformation, leading to a 12.4 percent increase in operating expenses, which amounted to KES 7.7 billion. These investments are expected to yield more significant results in the near future. Meanwhile, loan loss provisions decreased by 40.6 percent due to enhanced collection efforts and a healthier loan portfolio, despite the challenging operating environment.
Family Bank’s liquidity and capital positions remain robust, with liquidity and total capital ratios standing at 43.9 percent and 16.5 percent, respectively. Both figures are well above the regulatory requirements of 20 percent for liquidity and 14.5 percent for capital adequacy.
“As a Bank, we enhanced our buffers on the back of our improved portfolio metrics. We continue to work hand-in-hand to support all our customers, including those who may be facing challenges in meeting their obligations,” added Njau.
The Bank remains optimistic about its future growth prospects. With a focus on operational efficiency, customer-centric services, and technological advancement, Family Bank is well-positioned to navigate the dynamic financial landscape while driving sustained profitability.
This strong performance reaffirms Family Bank’s position as a key player in Kenya’s banking sector, demonstrating resilience and adaptability amid economic uncertainties.