Family Bank net profit jumps 43pc to Sh2.3bn

The Family Bank Group has posted a Sh43 percent increase in profit after tax for the year to December 2021 driven by lower loan loss provisions.

The lender earned a net profit of Sh2.3 billion up from Sh1.6 billion in 2020 also helped by a significant growth in its interest income.

Family Bank’s net interest income grew by 20.8 percent to Sh7.8 billion from Sh6.4 billion in 2020 while its total non-funded income grew by 12.9 percent to Sh3 billion with income from other fees and commissions registering a growth of 19.7 percent to stand at Sh2.1 billion.

At the same time, the bank lowered its provisioning for bad loans to Sh768 million down from Sh1.6 billion in the previous year over increased confidence in borrowers’ ability to repay its loans as the economy recovers.

The lower provisioning boosted the financier’s with total operating expenses also decreasing by 2.8 percent to Sh7.5 billion from Sh7.7 billion.

"We continue to provide innovative products and superior customers experience which has seen our customers recognise us as the best bank in customer responsiveness and digital experience in 2022 during Kenya Bankers Awards,” said Family Bank Chief Executive Rebecca Mbithi.

The lender will pay a dividend of Sh1.1 billion at Sh0.83 per share.