Oral East Africa>Family Bank bucks industry trends to grow loan book At the hut of the story

Written by Oral East Africa

Family Bank Group’s net profits for the nine months to September was up 7.7 percent to Kes2.3 billion as the lender bucked industry trends to expand lending to customers.

The Lender’s loan book grew by Kes10 billion to Kes94 billion in a period where industry wide loans to the private sector tumbled to 3.7 percent in July from 13.9 at the end of last year.

Family Bank’s profits grew from Kes2.1 billion in a similar period last year on the back of interest incomes from loan book expansion to the private sector and government

Opening of Family Bank Eldoret West Branch

Total interest income surged by 29 percent to Kes14.6 billion, buoyed by a 20 percent rise in income from loans and advances, which reached Kes10.6 billion

Diversified growth

Investments in government securities yielded more with a resultant 65 percent jump in interest income attributable to higher yields and growth of the portfolio.

Non-funded income also rose by 13.2percent to Kes3.3 billion, with income from other fees and commissions increasing by 14.5 percent. This contributed to an 11 percent increase in total operating income, supporting the bottom-line growth.

“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. 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 Family Bank CEO Nancy Njau.

Invested in the future

Family Bank’s total assets grew by 16 percent to Kes163.2 billion from Kes141 billion in September 2023, reflecting the Group’s continued growth trajectory.

The Bank continued its investments in talent development, technology and digital transformation which saw operating expenses for the period rise by 12.4percent to Kes7.7 billion.

These investments have started yielding and we expect the results to scale up in the short to medium term.

Meanwhile, loan loss provisions expense slowed down during the period by 40.6 percent compared to previous year as we enhanced collection efforts and maintained a healthy portfolio despite the tough operating environment.