Family Bank profit after tax surges by 38% in 2024

Family Bank Group has reported a 38% increase in profit after tax for 2024, rising from Ksh.2.5 billion in 2023 to Ksh.3.4 billion.

The bank's profit before tax also grew by 22.5%, reaching Ksh.3.9 billion up from Ksh.3.1 billion the previous year.

The strong performance was driven by significant revenue growth, a robust capital base, improved liquidity and enhanced operational efficiency. Total revenue also increased by 12.5%, to Ksh.15.0 billion.

The bank also saw a 28.8% rise in total interest income, which reached Ksh.20.3 billion, driven mainly by a 20.5% increase in earnings from loans and advances, along with a 62.1% surge in income from government securities.

Net interest income also grew by 13.9% in the period under review, totaling Ksh.10.7 billion. Non-interest income also saw an 8.9% rise, reaching Ksh.4.3 billion, supported by strong growth in fees and commissions.

"2024 was a year of strategic resilience and strong top-line growth for Family Bank as we successfully concluded our five-year strategy. We focused on diversifying our tailored product offerings to meet the evolving needs of our customers while at the same time reinforcing our community presence,” said Family Bank Chief Executive Officer Nancy Njau.

“Despite economic challenges, we remained agile by broadening our revenue streams, supporting key economic sectors such as SMEs, agribusiness, and manufacturing, enhancing operational efficiencies, and deepening customer relationships."

Family Bank’s total assets also increased by 18.3% to Ksh.168.5 billion, driven by a 6.9% growth in the net loan book, which now stands at Ksh.92.9 billion.

Customer deposits similarly increased by 23.3% to Ksh.126.4 billion during the period.

Despite the growth, the Bank maintained strict cost control, limiting operating expenses to a 9.3% increase. Furthermore, loan loss provisions dropped by 48.3%, totaling Ksh.717.2 million.

"Looking ahead, we have laid a very strong foundation, and our focus remains on scaling and deepening customer experience in all the sectors that we operate in. Our 2025-2029 strategy is anchored on innovation, digital transformation, customer-centricity, data-driven decision-making, and sustainable growth. With a strong capital base and solid market positioning, we are well-equipped to seize new opportunities and drive long-term value creation," Njau said.  

The Group’s Board of Directors has since proposed a 52% increase in dividend from Ksh.0.56 per share to Ksh.0.85% per share.