Family Bank Group has recorded a Ksh3.3 billion Profit Before Tax for the year ended December 31, 2021, marking a 131.6 percent growth in earnings. The growth in earnings was largely driven by an increase in interest income, marginal growth in interest expenses and operating expenses coupled with a reduction in the loan loss provisions.
The Group’s total assets grew by 23 percent to close at Ksh111.7 billion driven by net loans and advances which expanded by 18.2 percent to Ksh66.9 billion while investment in government securities increased by 45 percent to Ksh24.7 billion on account of improved liquidity. Customer deposits increased by 17 percent to Ksh81.9 billion.
Net interest income grew by 20.8 percent to Ksh7.8 billion from Ksh6.4 billion in the Year 2020. Total non-funded income grew by 12.9 percent to Ksh3.0 billion with income from other fees and commissions registering a growth of 19.7 percent to stand at Ksh2.1 billion despite the continued zero-rating of mobile transaction offerings.
The Group’s operating expenses decreased by 2.8 percent to Ksh7.5 billion from Ksh7.7 billion mainly driven by prudent management of operating costs and a reduction in loan loss provisions.
“2021 was a recovery year for the Bank. Our overall growth demonstrates the Group’s resilience and recovery of our customers from the COVID-19 pandemic effects. In 2021, we continued to support our customers, increased and accelerated loan disbursements and achieved growth in all our key parameters. We continue to provide innovative products and superior customers experience which has seen our customers recognize us as the Best Bank in Customer Responsiveness and Digital Experience in 2022 during Kenya Bankers Awards,” said Family Bank Chief Executive Officer Rebecca Mbithi.
On the back of the strong performance, the Directors have proposed Ksh1.1 billion (Ksh0.83 per Share) dividend pay-out subject to the Shareholders’ approval during the Annual General Meeting to be held on April 29, 2022.