Family Bank net profit for the first six months ended June 2024 increased by 17.1 percent to Sh1.65 billion on the back of increased interest and non-interest income.
The lender’s net profit growth from Sh1.41 billion posted in a similar period last year came as net interest income rose by 12.7 percent to Sh4.97 billion and non-interest income grew by 20 percent to Sh2.28 billion.
The higher interest income was helped by the loan book growing to Sh91.4 billion from Sh84.68 billion, supporting the growth in total operating income by 15 percent to Sh7.2 billion.
“Our focus in the first half of the year has been on prudent financial management by strengthening our liquidity position while working on satisfying customer needs,” said Nancy Njau, Family Bank’s chief executive.
“We continue to prioritise building scalable infrastructure to continue supporting the significant balance sheet growth we have experienced over the last few years.”
Family Bank’s operating expenses in the review period rose by 14.7 percent to Sh4.92 billion from Sh4.29 billion. The increased operating expenses was despite the lender cutting its loan loss provisions by 30 percent to Sh393 million.
The rise in the expenses was majorly driven by staff costs rising to Sh1.91 billion from Sh1.88 billion and other operating costs growing to Sh1.9 billion from Sh1.3 billion. The lender is seeking to ride on a mix of organic and inorganic growth to expand beyond Kenya for the first time.
Family Bank shareholders approved a rights issue in which existing investors were offered 643.5 million new shares in a bid to raise capital for digital investments and recapitalize the bank for local and regional acquisitions.
However, the rights issue, which closed on January 31, 2024 raised Sh252 million, with the lender saying it missed the initial target.
