Family Bank half year profit up 15.4pc to Sh2.3b

Family Bank Chief Executive Officer Nancy Njau and Chief Financial Officer Stephen Karumbi during the last the recent Annual General Meeting, where the Bank reported a Sh2.32 billion profit before tax in the first six months of 2024. [James Wanzala, Standard]

Family Bank Group has posted a Sh2.32 billion profit before tax in the first six months of 2024.

This was a 15.4 per cent increase compared to Sh2 billion registered in the same period in 2023.

The growth in profitability, the bank said, was mainly driven by an increase in revenues amid a tough operating environment.

"Our focus in the first half of the year has been on prudent financial management by strengthening our liquidity position while working on satisfying customer needs," said Family Bank chief executive Nancy Njau.

"The performance of this first half is a testament of the Bank's agility and resilience in the face of enduring market uncertainties.

"We continue to prioritise building scalable infrastructure to continue supporting the significant balance sheet growth we have experienced over the last few years."

Total assets increased by 19.2 per cent to Sh158.3 billion up from Sh132.8 billion in June 2023.

The growth was funded through deposits, which increased by 18 per cent from Sh100.8 billion to Sh 119 billion.

With the additional liquidity, the bank continued to support the customers with additional lending which saw the loans portfolio and advances increase to Sh 91.4 billion from Sh86.5 billion in June 2023.

With the muted demand of credit from customers due to the prevailing macroeconomics, the Bank invested the available liquidity in government securities which saw this investment class increase by 69 per cent to Sh41.9 billion from Sh24.8 billion.

Interest income grew by 26.1 per cent driven by the growth in the loan book and the additional investments in government securities.

Net Interest income increased by a 12.7 per cent to close at Sh 4.9 billion.

This growth, was however muted by the higher cost of funding that was witnessed during the period which saw a 46 per cent increase in interest expense in line with the high cost of funding witnessed in the first half of 2024.

The group's income diversification strategy was positive with non-funded income rising by 20 per cent to Sh2.3 billion.

This, it said, was largely driven by the fees and commissions, trade finance and gains from securities trading.