Family Bank Records Sh 3.5 Billion Pre- Tax Profit

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Family Bank Group has recorded a KES 3.5 billion Profit Before Tax for the first nine months of 2022 up from KES. 2.6 billion recorded in a similar period in 2021, marking a 33.2% growth in earnings

 

The growth was primarily driven by strong partnerships and an increase in non-interest income. The Group’s loan book expanded by 22.7% to KES 79.8 billion while customer deposits increased by 13.8% to KES 92.7 billion in the period under review.

 

Total non-interest income increased by 22.4 per cent to close at KES 2.7 billion for Q3’2022. Supported by a strong capital base, the balance sheet size grew with total assets increasing by 19.9% closing at KES128.5 billion.

“As a Bank, we continue to create a healthy operating environment that provides consistent growth and profitability to our customers as we build a sustainable business that goes beyond profit,”

said Family Bank CEO Rebecca Mbithi.

READ: Family Bank, BasiGo Ink E-Bus Financing Deal

Net interest income increased by 9.8 % to KES 6.2 billion, supported by an increase in interest income on loans and advances and government securities which grew by 16.6% and 40.7 % respectively.

 

Similarly, non-funded income increased by 22.4% from KES 2.3 billion to KES. 2.7 billion for the period under review with income from fees and commissions registering a decline of 50.1% to stand at KES 84.6 million.

 

Total operating expenses slightly increased by 3.6 per cent to KES 5.5 billion from KES 5.3 billion. Loan loss provisions registered a 42.1% reduction to close at KES 469.6 million.

 

This year, the Bank has partnered with Aqua For All to incentivize targeted lending for eligible community-based water service providers (CWPs) in Kenya covering a portfolio of Euro 2.8 million (approximately KES 350 million).

 

Under this program, Aqua for All shall provide a first loss grant to cover net losses resulting from a portfolio of qualifying loans in the unsecured Maji Plus product for CWPs. In addition, the Bank acquired USD 10 million, approximately KES 1.2 billion from Eco-Business Fund to increase access to finance for sustainable agricultural producers, particularly in the tea sector and KES 1.2 billion additional funding from Resp0nsability to deepen credit access to Small and Medium-sized Enterprises (SMEs).

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