Family Bank records 38 per cent profit growth for 2024
The bank stated that a strong capital base and liquidity position, cost and operational efficiency also propelled the profit margins.
Family Bank Group’s profit increased to Sh3.4 billion in 2024 from Sh3.1 billion in 2023.
This is a 38 per cent increase from the previous financial period, which the lender attributed the growth to the robust and sustainable revenue growth.
The bank stated that a strong capital base and liquidity position, cost and operational efficiency also propelled the profit margins.
The total revenue grew by 12.5 per cent to Sh15.0 billion.
This was supported by a 28.8 per cent surge in total interest income to Sh20.3 billion, fueled by a 20.5 per cent rise in earnings from loans and advances and a 62.1 per cent increase in income from government securities.
The net interest income grew by 13.9 per cent to Sh10.7 billion, reflecting strategic asset allocation, while non-interest income rose by 8.9% to Sh4.3 billion, supported by strong growth in other fees and commissions.
“The last financial year was a year of strategic resilience and strong top-line growth for Family Bank as we successfully concluded our five-year strategy. We focused on diversifying our tailored product offerings to meet the evolving needs of our customers while at the same time reinforcing our community presence,” Family Bank Chief Executive Officer Nancy Njau said.
“Despite economic challenges, we remained agile by broadening our revenue streams, supporting key economic sectors such as SMEs, agribusiness, and manufacturing, enhancing operational efficiencies, and deepening customer relationships,” she added.
The Group’s total assets grew by 18.3 per cent to Sh68.5 billion, driven by a 6.9 per cent expansion in the net loan book to Ksh 92.9 billion, reaffirming the Bank’s commitment to empowering businesses and individuals with access to credit by private sector.
Notably, the loan loss provisions reduced by 48.3 per cent to Ksh 717.2 million, reflecting improved asset quality and prudent risk management.
The Group’s Board of Directors has proposed a 52 per cent increase in dividend from Sh0.56 per share to Sh0.85 per cent per share, reflecting our commitment to reward our shareholders.
