Increased lending grows Family Bank's half-year profit to Sh1.6 billion

Family Bank CEO Rebecca Mbithi and Aqua for All MD Josien Sluijs during the signing of a Sh350m partnership deal in July 2022. [James Wanzala, Standard]

Family Bank Group has posted a net profit of Sh1.6 billion in the first six months of this year, up from Sh1.2 billion in the same period last year.

Net interest income also rose from Sh3.7 billion over the period to June 30, 2022, to Sh4.1 billion, buoyed by increased loans and advances.

Total operating incomes also rose to Sh5.9 billion, from Sh5.2 billion in the first half of last year.

The bank’s total operating expenses increased marginally from Sh3.5 billion last year to Sh3.6 billion in the first half of this year as staff costs increased, even as loan loss provisions fell.

The bank’s total non-performing loans and advances rose to Sh10.4 billion during the period under review - up from Sh9.4 billion last year.

Insider loans and advances doubled to Sh5.6 billion this year, up from Sh2.8 billion in 2021.

The bank's assets also rose to Sh124 billion, up from Sh100 billion in the same period last year.

The loan book grew by 19.3 per cent, closing at Sh75.6 billion, up from Sh63.4 billion in June 2021.

Total deposits increased by 19 per cent to close at Sh90.7 billion from Sh76 billion in June last year.

Digitisation and income diversification saw the non-funded income grow by 21 per cent from Sh1.5 billion to Sh1.9 billion during the period under review.

“We continue to focus on supporting our customers across diverse sectors of our economy through partnerships, digitisation and other innovative solutions that provide a compelling value proposition for them. We have seen a growth in loans and advances as we continue to on-lend to our customers to support business and personal growth,” said Chief Executive Rebecca Mbithi.