Family bank profit dips 4 percent to Sh2.2 billion, to pay dividends
Family Bank Group’s net profit has dropped by 4 percent to Kes2.2 billion from Kes2.3 billion in 2021 despite double-digit growth in revenues, and customer loans. The bank has, however, gone with the trend in the banking sector so far by declaring a total dividend of Kes0.62 per share.
The Group disbursed Kes81.4 billion worth of loans in 2022 representing a 21.7 percent jump from the Kes66.9 loans issued during the previous year. However, customer deposits grew at a much lesser pace registering 8.5 percent uptick to close at Kes88.9 billion compared to Kes81.9 billion earlier.
The lender’s total interest income went up by 22 percent to Kes13.1 billion largely on account of Kes1.6 billion earned from loans and Kes700 generated from government securities.
“Through our fundraising partners, having raised over USD56 billion, we have been able to increase our lending to various MSMEs as well as climate-friendly investments and women-led businesses in education, health, agriculture, energy and manufacturing sectors. This is evidenced by the growth of our revenues, amidst the complex operating environment with the General Election, drought, impact of the Ukraine-Russia war and post-pandemic recovery,” said Family Bank CEO Rebecca Mbithi.
The bank, however, made Kes367.3 million from the trading of foreign exchange in a period when importers faced one of the worst drought of the US dollar amid the weakening shilling.
In the year, customer deposits grew by 8.5 percent to close at Kes88.9 billion compared to Kes81.9 billion recorded in a similar period in 2021. Staff costs grew by 33 percent due to the Group’s investment in training staff and attracting talent to support its growth strategy.
Gross non-performing loans increased by 12.8 percent to close at Kes12.4 billion in 2022 compared to Kes11 billion in 2021.
