Kenya: Family Bank Group Posts Sh3.3 Billion Profit

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Nairobi — Family Bank Group has recorded a 131.6 per cent growth in earnings for the year ended 31 December 2021 to post a Sh3.3 billion profit before tax.

The growth in earnings was largely driven by an increase in interest income, marginal growth in interest expenses and operating expenses coupled with a reduction in the loan loss provisions.

“2021 was a recovery year for the bank. Our overall growth demonstrates the Group’s resilience and recovery of our customers from the Covid-19 pandemic effects. In 2021, we continued to support our customers, increased and accelerated loan disbursements and achieved growth in all our key parameters,” said Family Bank Chief Executive Officer Rebecca Mbithi.

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Total assets grew by 23 per cent to close at Sh111.7 billion driven by net loans and advances which expanded by 18.2 per cent to Sh66.9 billion while investment in government securities increased by 45 per cent to Sh24.7 billion on account of improved liquidity.

During the period under review, customer deposits increased by 17 per cent to Sh81.9 billion.

The net interest income grew by 20.8 per cent to Sh7.8 billion from Sh6.4 billion in the previous year.

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Total non-funded income grew by 12.9 per cent to Sh3.0 billion with income from other fees and commissions registering a growth of 19.7 per cent to stand at Sh2.1 billion despite the continued zero-rating of mobile transaction offerings.

The Group’s operating expenses decreased by 2.8 per cent from Sh7.7 billion to Sh7.5 billion due to the prudent management of operating costs and a reduction in loan loss provisions.

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The Family Bank Group directors have proposed Sh1.1 billion, a 0.83 per share dividend pay-out subject to the shareholders’ approval during the Annual General Meeting to be held on April 29.

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