Family Bank profit before tax grew by 15.4 per cent to Sh2.32 billion in the first six months of this year compared to a similar period in 2023, buoyed by a rise in interest income.
In the review period, net interest income grew by 12.7 per cent to Sh4.9 billion.
“This growth was muted by the higher cost of funding witnessed during the period which saw a 46% increase in interest expense in line with the high cost of funding witnessed in the first half of 2024,” the bank announced in its H1 financial statement.
Likewise, its total assets increased by 19.2 percent to Sh158.3 billion, up from Sh132.8 billion in June 2023.
The growth was funded through deposits, which increased by 18 percent from Sh100.8 billion to Sh119 billion.
With the additional liquidity, the bank’s lending through loans and advances expanded to Sh91.4 billion from Sh86.5 billion in June 2023.
“With the muted demand of credit from customers due to the prevailing macroeconomics, the Bank invested the available liquidity in government securities which saw this investment class increase by 69 per cent to Sh41.9 billion from Sh24.8 billion.”
