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Family Bank Records Rise in Earnings to Kes.3.3B Profit Before Tax in 2021

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By Shadrack Nyakoe  

Family Bank Group “The Group” has recorded a KES 3.3 billion profit before tax for the year ended 31 December 2021, marking a 131.6% growth in earnings.

The growth in earnings was largely driven by an increase in interest income, marginal growth in interest expenses and operating expenses coupled with a reduction in the loan loss provisions.

The Group’s total assets grew by 23% to close at KES 111.7 billion driven by net loans and advances which expanded by 18.2% to KES 66.9 billion while investment in government securities increased by 45% to KES 24.7 billion on account of improved liquidity. Customer deposits increased by 17% to KES 81.9 billion.

Net interest income grew by 20.8% to KES 7.8 billion from KES 6.4 billion in the Year 2020. Total non-funded income grew by 12.9% to KES 3.0 billion with income from other fees and commissions registering a growth of 19.7% to stand at KES 2.1 billion despite the continued zero-rating of mobile transaction offerings.

The Group’s operating expenses decreased by 2.8% to KES 7.5 billion from KES 7.7 billion mainly driven by prudent management of operating costs and a reduction in loan loss provisions.

“2021 was a recovery year for the Bank. Our overall growth demonstrates the Group’s resilience and recovery of our customers from the COVID-19 pandemic effects. In 2021, we continued to support our customers, increased and accelerated loan disbursements and achieved growth in all our key parameters.  We continue to provide innovative products and superior customers experience which has seen our customers recognize us as the Best Bank in Customer Responsiveness and Digital Experience in 2022 during Kenya Bankers Awards,” said Family Bank Chief Executive Officer Rebecca Mbithi.

Family Bank CEO Rebecca Mbithi

On the back of the strong performance, the Directors have proposed KES 1.1 billion (KES 0.83 per Share) dividend pay-out subject to the Shareholders’ approval during the Annual General Meeting to be held on 29 April 2022.

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