Family Bank Group Achieves Impressive Growth In Q1 2024

• Family Bank Group reported an increased profit driven by rising interest income, non-funded income, and strategic balance sheet expansion
• The bank’s total assets surged by 10.7%, reaching KSh 145.9 billion during the review period; these funds were strategically directed towards customer loans and advances
• On the other hand, total non-performing loans increased slightly by 2.8%, reflecting current operating conditions

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Family Bank Group has reported a KSh 1.3 billion profit before tax for the first quarter ending March 31, 2024, marking a 24.3% increase compared to the same period last year.

Interest income and non-funded income

Family Bank CEO Nancy Njau said profit growth was primarily driven by a rise in interest income and non-funded income, alongside a strategic expansion of the balance sheet.

The bank's total assets grew by 10.7%, reaching KSh 145.9 billion during the period under review. This growth was supported by a 19% increase in customer deposits, which rose from KSh 92.7 billion to KSh 110.43 billion.

"Our first-quarter results show significant improvement from last year's performance. Despite a tough operating environment, the bank remains resilient," said Family Bank CEO Nancy Njau

The funds (customer deposits) were directed towards customer loans and advances, which saw a 4% increase to KSh 87.44 billion, and government securities, which increased by 29% to KSh 32.7 billion.

Net interest income for the bank saw a 19.9% rise, closing at KSh 2.4 billion for the quarter, up from KSh 2 billion in the same period last year.

The group continued to focus on talent development, digitisation, and operational efficiency, resulting in a 22.5% increase in operating expenses.

Additionally, provisions for loans and advances rose by 28.8% to KSh 209.1 million, up from KSh 162.5 million in the first quarter of 2023.

Total non-performing loans saw a slight increase of 2.8%, reflecting current operating conditions.

Family Bank reported a profit of KSh 2.5 billion after tax for the year ending December 31, 2023, marking a 13.3% increase from the previous year.

Family Bank appoints new board chairman

Last week, Family Bank named a new board chairman to succeed Wilfred Kiboro, who is retiring after a successful tenure since 2012.

Kiboro steered Family Bank through the COVID-19 pandemic and the 2016 banking crisis.

He has also seen the bank expand from 68 branches to 95. The institution's profitability increased from KSh 526 million in 2012 to KSh 2.5 billion in 2023.

Proofreading by Otukho Jackson, a multimedia journalist and copy editor at TUKO.co.ke