Family Bank Group has recorded a KES 3.7 billion Profit Before Tax for the full year ended 31 December 2022, a 12.2 % growth compared to KES 3.3 billion posted in 2021.
The revenue growth was catapulted by double-digit growth in revenues, customer loans, and prudent investment decisions by the Bank.
Total revenues increased by 10.6% to KES 11.9 billion driven by 10.7% growth in net interest income that stood at KES 8.6 billion in the period under review largely as a result of exponential growth in interest income from loans and that of government securities which grew by 19.2% and 29.9% respectively in the period under review.
Customer loans grew by 21.6 % to close at KES 81.4 billion while net interest income increased by 10.7% to KES 8.6 billion. On the balance sheet side, total assets expanded by 15% from KES 111.7 billion to close at KES 128.5 billion in 2022. Non-funded income grew by 10.6% to KES 3.4 billion, an affirmation that our diversification strategy continues to pay off.
“In 2022, we focused on diversification of product offerings through the financing of second-hand importation and innovative finance for MSMEs in the water and sanitation sector. Through our fundraising partners, having raised over USD 56 million, we have been able to increase our lending to various MSMEs as well as climate-friendly investments and women-led businesses in the education, health, agriculture, energy, and manufacturing sectors. This is evidenced by the growth of our revenues, amidst the complex operating environment with the General Elections, drought, impact of the Ukraine-Russia War, and post-pandemic recovery,” said Family Bank CEO Rebecca Mbithi.
“We are confident of our performance in 2023 having put in place an aggressive strategy that prioritizes heavy investment in digital banking and rolls out of agri-finance products as we seek to strengthen our balance sheet through the adoption of additional core capital and long-term debt while driving operational efficiencies across our businesses,” added Ms. Mbithi.
In 2022, customer deposits grew by 8.5% to close at KES. 88.9 billion compared to KES 81.9 billion recorded in a similar period in 2021. Staff costs grew by 33% due to the Group’s investment in training staff and attracting top-notch talent to support its aggressive strategy and to deliver exceptional service to the customers.
There was a significant reduction in the Group’s loan loss provisions by 35.6% to settle at KES. 495.1 million against KES. 768.1 billion recorded in 2021. Net non-performing loans increased by 18.4% to close at KES 5.6 billion in 2022 compared to KES 4.8 billion in 2021.
The Bank has declared a total dividend of KES 0.62 per share. Shareholders’ funds grew by 3.3% to close at KES 16.1 billion. The Group’s Profit After Tax for 2022 stood at KES 2.2 billion. The Bank’s capital and liquidity ratios remain strong, adequately above the regulatory requirement.
Recently, the Bank acquired a KES 3.9 billion (USD 30 million) lending facility for trade & Small and Medium Enterprises (SME) from the African Development Bank Group (AFDB) to promote onward lending to SMEs in health, renewable energy, and agriculture and reduce the SME finance gap, especially for women-led businesses.
About Family Bank
Family Bank is a financial institution that prides itself in growing a strong retail customer base with a key focus on SME banking anchored on the positive transformation of people’s lives in Africa. Family Bank is the fifth-largest bank in Kenya, as of Dec 2020, in terms of branch network with 93 branches across 32 counties. The Bank has over 600,000 customers, 4,800 bank agents, and over 8,000 merchants countrywide with total assets exceeding KES 128 billion and a deposit base in excess of KES 88 billion.
Family Bank prides itself in being a digitally innovative bank having been the first bank to introduce paperless banking through smart card technology and mobile banking, PesaPap, in Kenya and the first to launch mVisa service in Africa.
In 2021 Family Bank received two awards; Financial Communication Campaign of the Year and Overall Public Relations Campaign of the Year at the 2021 Public Relations Society of Kenya Annual Awards for Excellence for the Corporate Bond Campaign where the Bank raised KES 4.42 billion via public placement marking a subscription of 147.3%. In 2022, Family Bank was voted as the overall second-best bank and best tier-two bank in customer responsiveness and digital banking experience in a survey conducted by the Kenya Bankers Association.
Other awards include Bank of the year 2022, for high-impact agricultural SME lending by ACELI Africa; Best SME Bank in Kenya at the annual Banker Africa Awards 2017 East Africa –an award initiative for financial institutions in Africa; Think Business Fastest Growing Bank Award three years in a row between 2013 and 2015; and the Think Business Best Bank in Micro-Finance Award, 1st Runner-up in 2013 and 2014. For more information about Family Bank, please visit: www.familybank.co.ke
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