Family Bank has reported a robust year-on-year increase in net profits to Sh910.5 million for the first quarter ended 31 March 2024, marking a nearly 25% rise from Sh685.3 million in the same period last year. This growth was driven by a substantial increase in both net interest income, which grew by 19.9% to Sh2.4 billion, and non-funded income, which rose by 29.7% to Sh1.3 billion. The bank’s strategic focus on diversifying its income streams has clearly paid off.
Despite facing challenges such as rising interest rates and increased operating expenses, Family Bank demonstrated resilience. The bank’s interest income from government securities and loans and advances grew significantly by 44.2% and 26.5%, respectively. However, interest expense also increased by 47.1% due to the prevailing macro-economic conditions.
Family Bank’s commitment to talent development, digitisation, and operational efficiency contributed to a 22.5% increase in operating expenses. The bank also increased provisions for loans and advances by 28.8%, reflecting prudent risk management practices amid the tough operating environment.
Nancy Njau, CEO of Family Bank, highlighted the bank’s strong performance amidst the challenging conditions. She emphasized the bank’s dedication to supporting customer needs, optimizing operational efficiencies, and investing in its workforce. The bank’s total assets increased by 10.7% to Sh145.9 billion, with a 19% rise in customer deposits to Sh110.43 billion, demonstrating strong customer confidence.
Family Bank maintained a robust statutory ratios compliance position, with a total capital ratio of 16.5% and a liquidity ratio of 43%, well above the minimum statutory requirements. The bank’s strategic investments in loans and advances, which grew by 4% to Sh87.44 billion, and government securities, which increased by 29% to Sh32.7 billion, further supported its growth trajectory.
#FamilyBank #FinancialResults #Banking #DigitalTransformation #CustomerService #EconomicGrowth #Finance #Leadership
