The Family Bank Group saw its net profit during the first three months of 2023 remain flat in what the lender blames a tough operating environment.
The lender made Kshs 732 million, which is marginally lower than the Kshs 733 million recorded during a similar period last year.
Family Bank CEO Rebecca Mbithi, said: “The operating environment has been tough but the bank’s capital position and continued prudent risk management practices will see the Group ride the storm and continue taking advantage of the bankable opportunities in the market.”
Interest income increased 13.6% to Kshs 3.4 billion driven by the increased lending which saw the loan book grow by 16.5% within the same period.
Interest expense increased by 43.8% to close at Kshs 1.4 billion for the period under review. This is in line with the current macro-economic environment where cost of funding has gone up both locally and in the international market.
In line with the Bank’s income diversification strategy, non-interest income, made up of fees and commissions, foreign exchange income, trade finance and fees and commissions on loans and advances, increased by 39.2% to close at Kshs 995.8 million.
The Group continued to invest in modernizing its technology platforms, talent and on process improvements which saw the banks operating expenses increase by 15.9%. These continued investments are expected to bear fruits within the next 12 months.
The Group’s total assets closed at Kshs 131.9 billion total assets up from Kshs 122.3 billion an impressive growth over the last 12 months which was mainly applied to growing the loan book which saw a 15.4% to close at Kshs 83.8 billion from Kshs 72.6 billion in March 2022. Customer deposits rose by 3.7% to Kshs 92.8 billion.
The Group’s statutory ratios compliance position remained strong with the liquidity ratio stood at 36.3% against the minimum statutory ratio of 20% with the capital adequacy ratio closing at 17.8% against 14.5%.
The CEO said the Group will continue supporting customers with their banking needs and offer exceptional customer experience.