• Total non-performing loans increased marginally by 2.8per cent reflecting the current operating conditions.
•Total assets increased by 10.7 per cent to close at Sh145.9 billion for the period under review.
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Family Bank defied the high interest rates and increased operating expenses in the first three months of the year to post a year-on-year rise in net profits to Sh910.5 million for the period ended 31 March 2024.
This is almost a 25 per cent increase in net profits from the Sh685.3 million it reported in the first quarter of 2023.
The growth was driven by increased interest income and non-funded income.
In the three months to March net interest income grew by 19.9 per cent to close at Sh2.4 billion in the quarter from Sh2 billion recorded in the same period last year.
This was supported by an increase in income on government securities and loans and advances, which grew by 44.2 per cent and 26.5 per cent respectively.
However, interest expense increased by 47.1 per cent to close at Sh2 billion. The lender attributes the rise to the current macro-economic conditions where interest rates have been on the rise.
The lender said it continued to invest in talent development and acquisition, digitisation and operational efficiency, which saw the Bank’s operating expenses increase by 22.5per cent.
The tough operating environment also saw the lender increase the provisions for loans and advances by 28.8 per cent to Sh209.1 million from to Sh162.5 million recorded in the first quarter of 2023.
“The bank remains resilient amid the tough operating environment. We remain committed to supporting our customer needs, investing in our workforce and optimising our operational efficiencies,” said the CEO Nancy Njau.
She said that the bank continues to execute the income diversification strategy whose results were evident through a 29.7 per cent in non-funded income to close at Sh1.3 billion.
Total non-performing loans increased marginally by 2.8 per cent reflecting the current operating conditions.
The bank’s statutory ratios compliance position remained strong with the total capital ratio closing at 16.5 per cent while the liquidity ratio stood at 43 per cent against the minimum statutory ratio of 20per cent.
Total assets increased by 10.7 per cent to close at Sh145.9 billion for the period under review.
This was funded through a 19 per cent increase in customer deposits from Sh92.7 billion to Sh110.43 billion.
The funds were invested in lending to customers through loans and advances, which grew, by 4per cent to Sh87.44 billion. Further investments were made in government securities, which increased by 29 per cent to Sh32.7 billion.