A 26% growth in total interest income has powered Family Bank to report Kshs 1.65 billion in net profit during the first six months of this year.
The lender says it made Kshs 9.18 billion in total interest income, representing a 26.1% growth.
This mainly comprised of interest income from loans and advances which increased 19.1% to Kshs 6.79 billion while interest income from government securities grew 52.3% to Kshs 2.29 billion.
In addition, total non-interest income increased 20% to Kshs 2.28 billion.
During the period under review, loans and advances to customers increased from Kshs 84.68 billion to Kshs 91.4 billion.
This however came at a cost as the gross non-performing loans and advances increased 3.35% to Kshs 14.07 billion.
Despite this increase, the lender trimmed the loan loss provision from Kshs 562.92 million to Kshs 393.96 million. This was on account of lower net Non-Performing Loans exposure from Kshs 419.23 million to Kshs 302.18 million.
A notable feature in Family Bank’s financial statements is a steady increase in the total insider loans and advances and other facilities, which jumped 64.24% to Kshs 5.08 billion.
Operating expenses increased by 15% to Kshs 4.9 billion mainly driven by continued investments in technology, people and digital transformation.
“As a Group, 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. The performance of this first half is a testament of the Bank’s agility and resilience in the face of enduring market uncertainties. We continue to prioritise building scalable infrastructure to continue supporting the significant balance sheet growth we have experienced over the last few years,” said Family Bank CEO Nancy Njau.
