NAIROBI, Kenya, May 28 – Family Bank gross profit grew by 24.3 percent to Sh1.3 billion in the three months to March last year compared to a similar period last year, buoyed by high interest income.
In the review period, net interest income expanded by 19.9 percent to Sh2.4 billion, supported by a rise in income on government securities as well as loans and advances, which grew by 44.2 percent and 26.5 percent, respectively.
However, interest expense went up by 47.1 percent to Sh2 billion.
“The bank remains resilient amid the tough operating environment. We remain committed to supporting our customer needs, investing in our workforce and optimizing our operational efficiencies. This will ensure long term sustainable value creation to our shareholders,” said Family Bank CEO Nancy Njau.
In the period, its total assets improved by 10.7 percent to Sh145.9 billion, buoyed by a 19 percent jump in customer deposits from Sh92.7 billion to Sh110.43 billion.
“The funds were invested in lending to customers through loans and advances which grew by 4% to KES 87.44 billion. Further investments were made in government securities which increased by 29% to KES 32.7 billion.”
Investments in talent development and acquisition and digitization increased the bank’s operating expenses.
“Total non-performing loans increased marginally by 2.8% reflecting the current operating conditions. The Bank’s statutory ratios compliance position remained strong with the total capital ratio closing at 16.5 % while the liquidity ratio stood at 43% against the minimum statutory ratio of 20%.”
