Family Bank Group has reported Kshs 2.3 billion in net profit during the first none months of this year, representing a 7.7% growth. The profit was mainly driven by a 28.9% growth in total interest income to Kshs 14.6 billion.
In addition, non-funded income rose 13.2% to Kshs 3.3 billion, with income from other fees and commissions increasing by 14.5%. This contributed to an 11% increase in total operating income.
“Our focus for this year has been to accelerate business growth and optimize value creation across all areas of operation. The growth in profit underscores our unwavering commitment to delivering on strategic priorities while placing our customers at the core of our efforts,” said Family Bank, CEO, Nancy Njau.
On the other hand, total operating expenses increased 12.4% to Kshs 7.7 billion mainly on account of higher staff costs.
This could be attributed to the lender opening more branches that necessitated hiring of more employees as well as investment in training of its human resource.
“By aligning our investments with the evolving customer needs and driving operational efficiencies, we continue to position the Bank for sustained growth as we offer our customers superior financial products and services,” said Njau.
Gross non-performing loans increased 4% to Kshs 14.3 billion. This prompted the Family Bank increase the loan loss provision from Kshs 6.98 billion to Kshs 8.3 billion.