Family Group Net Earnings fell to KSh 1.4 billion at the end of six months ended 30th June 2023 compared to KSh 1.6 billion in HY 2022, a decline of 12.5%.
Family Group’s Pre-Tax Profit also declined to KSh 2 billion in HY2023 from KSh 2.3 billion at the end of the six-month period ended June 2022.
The Group’s interest income rose by 18.7% to KSh 7.3 billion supported by increased lending to customers across all business segments and placements with other banking institutions.
However, during the same period, interest expense increased by 38.9% to KSh 2.8 billion. This was mainly driven by the general increase in funding costs for deposits and borrowings as CBK hiked its CBR. The increase in interest income and interest expense saw the net interest income marginally increase by 8.44% as margins contracted.
Family Group’s non-funded income, fees, and commissions, increased by 6.6% to KSh 6.3 billion. Other Operating expenses and staff costs saw an increase of 8.2% and 22.3%.
The Group remained prudent and increased the loan loss provisions by 57% during the period to KSh 358.3 Million in HY 2022 to KSh 562.9 Million as of 30th June 2023.
The lender’s balance sheet size increased by 6.9 % to KSh 132.8 billion supported by a 12.0% growth in the loan book which increased to KSh 84.7 billion up from KSh 75.6 billion in June 2022.
Customer deposits grew by 11.1% to KSh 100.8 billion a historically significant milestone for the Group.
“Our focus as a Group in the first half of the year has been to support on-ward lending to our customers across diverse sectors of our economy given the tough economic conditions. We have also been shoring up the Group’s liquidity position to ready the Group to take advantage of opportunities when the economic tide turns favourably. We have continued to drive product innovation, digitization, employee engagement, and building scalable IT infrastructure in our business. This will indeed position the Group to scale in the future successfully,” said Family Bank CEO Rebecca Mbithi.
Total Shareholder funds, an amount that the lender’s owners would be paid if the business was to be liquidated, increased from KSh15.2 billion in HY 2022 to KSh 16.6 billion in HY 2023.