Tuesday, April 16, 2024

Family Bank full year net profit rises 13 per cent to Sh. 2.5 billion

Family Bank has recorded a Sh. 2.3 billion net profit. This Family Bank full year net profit is equivalent to a 13.3 per cent jump from the Sh. 2.2 billion that the bank recorded in the same period the previous year.

Following this profit growth, the bank has announced that it will pay out a dividend of Sh. 0.56 per share.

“The group directors have proposed a 30 percent dividend payout which translates to Sh. 0.56 per share. The bank’s total capital and liquidity ratios remained strong, adequately above the regulatory requirement,” Family Bank said in a statement.

During the period under review, net interest income rose 9.2 per cent to Sh. 9.3 billion as the loan book expanded to Sh. 86.9 billion from Sh. 81.3 billion. Interest expenses surged 40.8 per cent to Sh. 6.3 billion, reflecting the rising interest rate environment.

At the same time, non-interest income increased to Sh. 3.9 billion from Sh. 3.3 billion while operating expenses increased to Sh. 10.1 billion from Sh. 8.2 billion.

This increase in operating expenses was attributed to higher loan loss provision, staff costs and other items. The increase in loan loss provisions came as the non-performing loans increased to Sh. 14 billion from Sh. 12.4 billion.

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“Operating expenses growth was kept at a minimum. This was mainly driven by the high inflation, continued investments in people and technology and the Kenya shilling depreciation which saw a steep increase in the dollar-denominated technology-related expenses,” the bank said.

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