Family Bank Group has recorded a Ksh3.5 billion Profit Before Tax for the first nine months of 2022 up from Ksh2.6 billion recorded in a similar period in 2021, marking a 33.2% growth in earnings.
The growth was primarily driven by strong partnerships and an increase in non-interest income. The Group’s loan book expanded by 22.7% to Ksh79.8 billion while customer deposits increased by 13.8% to Ksh92.7 billion in the period under review. Total non-interest income increased by 22.4 per cent to close at Ksh2.7 billion for Q3’2022. Supported by a strong capital base, the balance sheet size grew with total assets increasing by 19.9% closing at KES128.5 billion.
“As a Bank, we continue to create a healthy operating environment that provides consistent growth and profitability to our customers as we build a sustainable business that goes beyond profit,” said Family Bank CEO Rebecca Mbithi.
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Net interest income increased by 9.8 % to Ksh6.2 billion, supported by an increase in interest income on loans and advances and government securities which grew by 16.6 % and 40.7 % respectively. Similarly, non-funded income increased by 22.4% from Ksh2.3 billion to Ksh2.7 billion for the period under review with income from fees and commissions registering a decline of 50.1% to stand at Ksh84.6 million.
Total operating expenses slightly increased by 3.6 per cent to Ksh5.5 billion from Ksh5.3 billion. Loan loss provisions registered a 42.1% reduction to close at Ksh469.6 million.
This year, the Bank has partnered with Aqua For All to incentivize targeted lending for eligible community-based water service providers (CWPs) in Kenya covering a portfolio of Euro 2.8 million (approximately Ksh350 million). Under this program, Aqua for All shall provide a first loss grant to cover net losses resulting from a portfolio of qualifying loans in the unsecured Maji Plus product for CWPs. In addition, the Bank acquired USD 10 million, approximately Ksh1.2 billion from Eco-Business Fund to increase access to finance for sustainable agricultural producers, particularly in the tea sector and Ksh1.2 billion additional funding from Resp0nsability to deepen credit access to Small and Medium-sized Enterprises (SMEs).
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