Family Bank Q12023 Earnings grows to KES1.04Bn

Family Bank Q12023 Earnings grows to KES1.04Bn Profit before Tax

The Family Bank Group has recorded a KES. 1.04 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% to to KES 3.4 billion driven by the increased lending which saw the loan book grow by 16.5% within the same period.

Interest expense increased by 43.8% to close at KES 1.4 billion for the period under review.This is in line with the current macro-economic environment where 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 KES 995.8 million.

The Group continued to invest in modernizing its technology platforms, talent and on process improvements which saw the banks operating expenses increase by 15.9%.

These continued investments are expected to bear fruits within the next 12 months.

The Group’s total assets closed atKES131.9 billion total assets up from KES. 122.3 billion an impressive growth over the last 12 months which was mainly applied to growing the loan book which saw a 15.4% to close at KES. 83.8 billion from KES 72.6 billion in March 2022. Customer deposits rose by 3.7% to KES. 92.8 billion.

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

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”.