Family Bank Group has announced a strong financial performance for the year 2024, with a 38% increase in profit after tax, rising from KES 2.5 billion in 2023 to KES 3.4 billion. This impressive growth is a reflection of the bank's strategic efforts to drive revenue growth, maintain a solid capital base, and enhance operational efficiencies.
The bank's profit before tax (PBT) also saw a healthy rise of 22.5%, reaching KES 3.9 billion compared to KES 3.1 billion in 2023. These results were underpinned by a robust revenue performance, with total revenue growing by 12.5% to KES 15.0 billion. A key driver of this success was a 28.8% surge in interest income, which climbed to KES 20.3 billion. This growth was largely attributed to a 20.5% increase in earnings from loans and advances and a remarkable 62.1% rise in income from government securities.
Additionally, the bank's net interest income grew by 13.9% to KES 10.7 billion, reflecting its effective asset allocation strategy. Non-interest income also showed positive growth, increasing by 8.9% to KES 4.3 billion, boosted by a strong performance in fees and commissions.
Family Bank’s CEO, Nancy Njau, credited the impressive results to the successful implementation of the bank's five-year strategic plan, which focused on diversifying its product offerings and expanding its community presence. "2024 was a year of strategic resilience and strong top-line growth for Family Bank. Despite the economic challenges, we were able to remain agile, broaden our revenue streams, and deepen relationships with key sectors such as SMEs, agribusiness, and manufacturing," said Njau.
The bank’s total assets grew by 18.3% to KES 168.5 billion, driven by a 6.9% increase in its net loan book, which now stands at KES 92.9 billion. This growth highlights the bank's continued commitment to supporting private sector businesses and individuals through accessible credit. Family Bank also saw strong customer confidence, as evidenced by a 23.3% increase in customer deposits, reaching KES 126.4 billion by the end of the year.
In terms of cost management, Family Bank demonstrated discipline, limiting the growth of its operating expenses to 9.3%. Notably, the bank’s loan loss provisions decreased by 48.3% to KES 717.2 million, a testament to the improved asset quality and prudent risk management practices in place.
Looking ahead, Family Bank remains optimistic about its future prospects. "With a strong foundation, our focus for 2025-2029 is centered on innovation, digital transformation, and customer-centricity, backed by data-driven decision-making and sustainable growth," said CEO Njau. "We are well-positioned to take advantage of emerging opportunities and continue creating long-term value for our stakeholders."
The bank's financial health remains robust, with shareholders' funds increasing by 32.7% to KES 22.3 billion. Its core capital ratio stands at 16.2%, while the liquidity ratio is at 43.9%, both well above regulatory thresholds, ensuring resilience against market fluctuations.
In line with its strong performance, Family Bank’s Board of Directors has proposed a 52% increase in dividends, from KES 0.56 per share to KES 0.85 per share, reflecting the bank’s commitment to rewarding its shareholders.
Family Bank’s exceptional 2024 results highlight its ongoing success and strategic focus, positioning the bank for continued growth and success in the coming years.
0 $type={facebook}:
Post a Comment
Note: Only a member of this blog may post a comment.