Family Bank Group has posted a KES. 2.0 billion Profit Before Tax in the first six months to 30 June 2023.<\/p>\n
Family Group interest income rose by 18.7% to KES 7.3 billion supported by increased lending to customers across all business segments and placements with other banking institutions. However, during the same period, interest expense increased by 38.9% to KES 2.8 billion. This was mainly driven by the general increase in funding costs for deposits and borrowings in line with the tightening liquidity in the market due to the tight monetary policies by the government. \u00a0The increase in the interest income and the higher than increase in interest expense saw the net interest income marginally increase by 8.44% as margins contracted.<\/p>\n
The Group income diversification is on course as non-funded income, fees and commissions, increase by 6.6% to KES 6.3 billion. Other Operating expenses and staff costs saw an increase of 8.2% and 22.3%. The staff costs were mainly driven by an increase in head count in addition to the continued investment the bank continues to make in training the employees.<\/p>\n
In line with the tough macro-economic conditions, the Group remained prudent and increased the loan loss provisions by 57% during the period.<\/p>\n
Additionally, the total assets increased by 6.9 % to KES. 132.8 billion supported by a 12.0% growth in the loan book which increased to KES. 84.7 billion up from KES. 75.6 billion in June 2022. Customer deposits grew by 11.1% to KES 100.8 billion a historically significant milestone for the Group.<\/p>\n
\u201cOur focus as a Group in the first half of the year has been to support on-ward lending to our customers across diverse sectors of our economy given the tough economic conditions. We have also been shoring up the Group\u2019s liquidity position to ready the Group to take advantage of opportunities when the economic tide turns favorably. \u00a0We have continued to drive product innovation, digitization, employee engagement and building scalable IT infrastructure in our business. This will indeed position the Group to successfully scale in the future,\u201d said Family Bank CEO Rebecca Mbithi.<\/p>\n
The Bank\u2019s statutory ratios compliance position remained strong with the total capital ratio closing at 18.0 % against the minimal requirement of 14.5% while the liquidity ratio stood at 39.3% against the minimum statutory ratio of 20%.<\/p>\n","protected":false},"excerpt":{"rendered":"
Family Bank Group has posted a KES. 2.0 billion Profit Before Tax in the first six months to 30 June 2023. Family Group interest income rose by 18.7% to KES 7.3 billion supported by increased lending to customers across all business segments and placements with other banking institutions. However, during the same period, interest expense […]<\/p>\n","protected":false},"author":1,"featured_media":9696,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-9695","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-newsfeed"],"acf":[],"yoast_head":"\n