Family Bank Q1 2024 Profits Rise By 25% to Sh910.5 million

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Family Bank defied a difficult economic start to 2024, with net profits surging by 24.3% year-on-year to reach Sh910.5 million in Q1 2024. This marks a significant increase from the Sh685.3 million reported in the first quarter of 2023.

Net interest income, a traditional source of revenue for banks, witnessed a healthy rise of almost 20% to Sh2.4 billion. This growth was fueled by a significant increase in income from government securities and loans and advances.

The bank also strategically invested in talent development and digitization initiatives, leading to a 22.5% increase in operating expenses. This commitment to human capital and technological advancement positions the bank for future success.

Additionally, the bank proactively managed potential risks by prudently increasing provisions for loans and advances by 28.8%.

“The bank remains resilient amid the tough operating environment,” said CEO Nancy Njau. “We remain committed to supporting our customer needs, investing in our workforce and optimizing our operational efficiencies.”

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Non-funded income, which encompasses revenue generated beyond traditional interest-based activities, witnessed a remarkable increase of 29.7%, reaching Sh1.3 billion.

The bank’s total assets expanded by 10.7% to Sh145.9 billion, primarily funded by a 19% increase in customer deposits. These deposits were strategically channeled into loans and advances to customers, which grew by 4%, and investments in government securities, which increased by 29%.

The total capital ratio stands at a healthy 16.5%, exceeding the minimum regulatory requirement. This indicates that family bank kenya has sufficient capital to absorb potential losses and maintain solvency.

Additionally, the liquidity ratio remains well above the minimum regulatory requirement at 43%. This ensures that the bank has ample resources to meet its short-term obligations and customer withdrawals.

Family Bank is also preparing for a leadership transition. The Board of Directors has appointed Architect Francis Gitau Mungai as the new Chairman, subject to regulatory approvals.

Mr. Mungai’s experience and expertise will be instrumental in guiding the bank through its next chapter of growth and innovation. Dr. Wilfred Kiboro, who has served as Chairman since 2012, will be retiring, leaving behind a legacy of strong leadership and financial stability.

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For any inquiries, you can reach the family bank customer care through the family bank contacts at +254 (0) 703 095 445 or +254 (0) 703 095 000. Alternatively, send an email to customerservice@familybank.co.ke.

Make payments using the family bank paybill number 222111. If you prefer mobile banking options, simply dial the family bank ussd code *325# or download the family bank mobile app. You can also find comprehensive information on their website, Family Bank Website.