Family Bank’s third-quarter profit crosses Sh3 billion on higher loan uptake
Family Bank’s net income for the first nine months of the year hit Kes3.3 billion, a 34 percent improvement from Kes2.5 billion earned in the same period last year.
Higher demand for credit spurred a rally in the bank’s interest income, which went up by Kes1.7 billion to close the third quarter at Kes9.5 billion, up from Kes7.8 billion realized in a comparable period last year.
Earnings from loans and advances made for the biggest contribution to the lender’s interest income, clocking Kes7.2 billion in the nine months to September, a 16 percent increase from 6.2 billion earned in the corresponding period in 2021.
Investments in government securities comprised Kes2.26 billion of the lender’s gross interest earnings, even as Family Bank scaled back its stake in government securities from Kes12.5 billion to Kes8.15 billion.
Costs incurred on interest expenses on liabilities such as customer deposits ate up Kes3.3 billion, leaving the bank with a net interest income of Kes6.24 billion.
The bank also earned a modest Kes2.58 billion from non-funded income streams such as fees charged on loans and commissions charged on foreign exchange transactions.
Family Bank’s total operating income— which is the sum of net interest income and non-interest income amounted to Kes 8.818 billion, compared to Kes7.8 billion earned a year ago.
Although the bank’s reduced its loan loss provisions from Kes811 million to Kes469 million year-over-year, other operating expenses such as staff costs and rental charges trended upwards to account for a minor bump in the overall operating costs which totaled Kes5.47 billion.
The board did not declare an interim dividend payment to shareholders.