FAMILY BANK RECORDS A KSH. 2 BILLION PROFIT BEFORE TAX IN THE 2023 HALF-YEAR RESULTS

FAMILY BANK RECORDS A KSH. 2 BILLION PROFIT BEFORE TAX IN THE 2023 HALF-YEAR RESULTS.

By Bev Naliaka

Family Bank Group has posted a KES. 2.0

billion Profit Before Tax in the first

six months to 30 June 2023.

Family Group interest income rose by

18.7% to KES 7.3 billion supported by

increased lending to customers across

all business segments and placements

with other banking institutions.

However, during the same period,

interest expense increased by 38.9% to

KES 2.8 billion. This was mainly driven

by the general increase in funding

costs for deposits and borrowings in

line with the tightening liquidity in

the market due to the tight monetary

policies by the government. The

increase in the interest income and the

higher increase in interest expense

saw the net interest income marginally

increase by 8.44% as margins

contracted.

The Group income diversification is on

course as non-funded income, fees and

commissions, increase by 6.6% to KHS

6.3 billion. Other Operating expenses

and staff costs saw an increase of 8.2%

and 22.3%. The staff costs were mainly

driven by an increase in headcount in

addition to the continued investment

the bank continues to make in training

the employees.

In line with the tough macro-economic

conditions, the Group remained prudent

and increased the loan loss provisions

by 57% during the period.

Additionally, the total assets

increased by 6.9 % to KES. 132.8

billion supported by a 12.0% growth in

the loan book which increased to KES.

84.7 billion up from KES. 75.6 billion

in June 2022. Customer deposits grew by

11.1% to KES 100.8 billion a

historically significant milestone for

the Group.

“Our focus as a Group in the first half

of the year has been to support on-

ward lending to our customers across

diverse sectors of our economy given

the tough economic conditions. We have

also been shoring up the Group’s

liquidity position to ready the Group

to take advantage of opportunities when

the economic tide turns favourably.

We have continued to drive product

innovation, digitization, employee

engagement and building scalable IT

infrastructure in our business. This

will indeed position the Group to scale

in the future successfully,” said

Family Bank CEO Rebecca Mbithi.

The Bank’s statutory ratios compliance

position remained strong with the total

capital ratio closing at 18.0 %

against the minimal requirement of

14.5% while the liquidity ratio stood

at 39.3% against the minimum statutory

ratio of 20%