Family Bank Nets Ksh 1.04 Billion In Profits In 3 Months

by Business Watch Team
Family Bank

The Family Bank Group has recorded a 1.04 billion shillings Profit Before Tax for the period ending 31 March 2023. The Bank’s performance remained steady despite the tough operating environment in 2023.

Interest income increased by 13.6 percent to 3.4 billion shillings driven by the increased lending which saw the loan book grow by 16.5 percent within the same period.

Interest expense increased by 43.8 percent to close at 1.4 billion shillings for the period under review. This is in line with the current macroeconomic environment where the cost of funding has gone up both locally and in the international market.

In line with the Bank’s income diversification strategy, Non-interest income made up of fees and commissions, foreign exchange income, trade finance, and fees and commissions on loans and advances, increased by 39.2% to close at 995.8 million shillings.

The Group continued to invest in modernizing its technology platforms, talent, and process improvements which saw the bank’s operating expenses increase by 15.9 percent. These continued investments are expected to bear fruits within the next 12 months.

The Group’s total assets closed at 131.9 billion shillings total assets up from 122.3 billion shillings an impressive growth over the last 12 months which was mainly applied to growing the loan book which saw a 15.4 percent to close at 83.8 billion shillings from 72.6 billion shillings in March 2022. Customer deposits rose by 3.7 percent to 92.8 billion shillings.

The Group’s statutory ratios compliance position remained strong with the liquidity ratio standing at 36.3 percent against the minimum statutory ratio of 20 percent with the capital adequacy ratio closing at 17.8 percent against 14.5 percent.

Commenting on the results Rebecca Mbithi, the CEO and Managing Director stated, “The operating environment has been tough but the bank’s capital position and continued prudent risk management practices will see the Group ride the storm and continue taking advantage of the bankable opportunities in the market”. The CEO added that the Group will continue supporting customers with their banking needs and exceptional customer experience”.

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