Family Bank has reported a 15.4 percent increase in profit before tax, reaching Sh2.32 billion for the first six months of 2024. This growth is attributed to a rise in interest income, demonstrating the bank’s strong performance amid challenging economic conditions.
Net interest income grew by 12.7 percent to Sh4.9 billion during the review period. However, this growth was tempered by a 46 percent increase in interest expenses, reflecting the higher cost of funding experienced in the first half of 2024.
Total assets of the bank rose by 19.2 percent to Sh158.3 billion, up from Sh132.8 billion in June 2023. This expansion was supported by an 18 percent increase in deposits, which grew from Sh100.8 billion to Sh119 billion.
The additional liquidity enabled Family Bank to expand its lending portfolio, with loans and advances increasing to Sh91.4 billion from Sh86.5 billion. Despite muted credit demand due to the prevailing macroeconomic environment, the bank effectively utilized its liquidity.
The bank also invested additional funds in government securities, with this investment class increasing by 69 percent to Sh41.9 billion from Sh24.8 billion. This strategic allocation highlights the bank’s approach to managing liquidity and investment in a challenging economic landscape.
Family Bank’s financial results for the first half of 2024 underscore its resilience and strategic focus on growth and prudent financial management, positioning it well for continued success.
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