•In the review period net interest income grew by 12.7 per cent to Sh5 billion.
• Total assets increased by 19.2 per cent to Sh158.3 billion up from Sh 132.8 billion in June 2023.
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Family Bank has announced a 17.1 per cent increase in profit after tax for the first half of 2024, reaching Sh1.7 billion from Sh1.4 billion posted in 2023.
The growth in profitability was driven by an increase in the bank’s revenues mainly from investments in state securities and non-interest income.
The bank's performance was bolstered by a 7.9 per cent rise in loans and advances, which totalled Sh91.4 billion, and an 18.1 per cent increase in customer deposits, now standing at Sh119.1 billion.
Lender’s loans and advances increased to Sh91.4 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 69per cent to Sh41.9 billion from Sh24.8 billion.
Family Bank CEO Nancy Njau said that the focus in the first half of the year has been on prudent financial management by strengthening liquidity position.
“We continue to prioritise building scalable infrastructure to continue supporting the significant balance sheet growth we have experienced over the last few years,” said Njau.
In the review period net interest income grew by 12.7 per cent to Sh5 billion,
Following the performance Family Bank announced that it has raised its earnings per share to Sh1.27, up from Sh1.10 in the first half of 2023.
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 18per cent from Sh100.8 billion to Sh119 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 12.7per cent to close at SH4.9 billion.
This growth was muted by the higher cost of funding witnessed during the period, which saw a 46per 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 proved successful with non - funded income rising notably by 20per cent to Sh2.3 billion.
This was largely driven by the fees and commissions, trade finance and gains from securities trading.
Operating expenses increased by 15 per cent to Sh4.9 billion mainly driven by continued investments in technology, people and digital transformation.
Non-performing loans on the other hand increased from Sh13.6billion in 2023 to Sh14.07 billion in the first six months of 2024.