Family Bank Limited has announced a pre-tax profit of Ksh1.3 billion for the period ending March 31, 2024, indicating a 24.3 percent increase compared to the same period last year.
In a statement on Tuesday, May 28, 2024, the lender said during the reviewed period, there was a 10.7 percent rise in total assets, reaching Ksh145.9 billion. This growth was supported by a 19 percent surge in customer deposits, from Ksh92.7 billion to Sh110.43 billion.
These funds were utilized in customer lending, which increased by 4 percent to Sh87.44 billion, and in government securities investments, which rose by 29 percent to Sh32.7 billion.
“Our first-quarter results are a significant improvement from our performance last year. The bank remains resilient amid the tough operating environment,” Family Bank Chief Executive Officer (CEO) Nancy Njau said.
“We remain committed to supporting our customer needs, investing in our workforce and optimizing our operational efficiencies. This will ensure long term sustainable value creation to our shareholders,” she added.
Comprehensive Income
Net interest income also saw a notable increase of 19.9 percent, closing at Ksh2.4 billion. However, there was a 47.1 percent increase in interest expenses, reaching Ksh2 billion, attributed to the prevailing macro-economic conditions with rising interest rates.
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Despite this, the bank continued its income diversification strategy, resulting in a 29.7 percent increase in non-funded income to Ksh1.3 billion.
Operational expenses rose by 22.5 percent due to investments in talent, digitization, and operational efficiency.
Additionally, provisions for loans and advances increased by 28.8 percent to Ksh209.1 million, and non-performing loans rose marginally by 2.8 percent, reflecting current operating conditions.
The bank maintained a strong statutory compliance position, with a total capital ratio of 16.5 percent and a liquidity ratio of 43 percent, exceeding the minimum statutory ratio of 20 percent.
Family Bank Board Changes
Notably, the financials came in the wake of boardroom changes after Family Bank Limited named Architect Francis Gitau Mungai as the incoming chairman of the board of directors.
Francis will succeed the long-serving Chairman Dr. Wilfred Kiboro who is set to retire during the upcoming Annual General Meeting of the Company.
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“Architect Francis Gitau Mungai has been appointed as the new Chairman of the Board of Directors of Family Bank Limited subject to regulatory approvals,” the bank said in a statement.
Arch. Gitau Mungai who has been a member of Family Bank Limited Board since 2016, had also held the position of Vice-Chairman for the past two years.
He is the Founding Partner of Aaki Consultants, Architects, and Urban Designers, and has held positions with prominent firms such as Triad Architects in Nairobi and Urban Innovation Group (UIG) in Los Angeles.
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