Family Bank Group’s profit before tax for the nine months of 2024 grew by 8 per cent to Sh3.26 billion, up from Sh 3.02 billion in the same period last year thanks to a significant increase in income across various revenue streams.
Total interest income surged by 29 per cent to Sh14.6 billion, buoyed by a 20 per centrise in income from loans and advances, which reached Sh10.6 billion. The loan book expanded by 11.3 per cent to Sh94.2 billion. Our investments in government securities yielded more with a resultant 65 per cent jump in interest income attributable to higher yields and growth of the portfolio. Total assets grew by 16 per cent to Sh163.2 billion from Sh141 billion in September 2023, reflecting the Group’s continued growth trajectory.
Non-funded income rose by 13.2 per cent to Sh3.3 billion, with income from other fees and commissions increasing by 14.5 per cent. This contributed to an 11 per cent increase in total operating income, supporting the bottom-line growth.
“Our focus for this year has been to accelerate business growth and optimize value creation across all areas of operation. 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 our customers superior financial products and services,” Family Bank CEO Nancy Njau, said.
The lender continued its investments in talent development, technology and digital transformation which saw operating expenses for the period rise by 12.4 per cent to Sh7.7 billion. These investments have started yielding and we expect the results to scale up in the short to medium term.
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Meanwhile, loan loss provisions expense slowed down during the period by 40.6 per cent compared to previous year as we enhanced collection efforts and maintained a healthy portfolio despite the tough operating environment.
“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 any challenges in meeting their obligations,” she added.
The Bank’s liquidity and total capital ratios stands strong at 43.9 per cent and 16.5 per cent well above the regulatory requirements of 20 per cent and 14.5 per cent respectively.
