KENYA – Family Bank Limited, a commercial bank in Kenya, has posted a KSh1.6 billion (US$13.33m) net profit in the first six months of 2022, a 37.4 per cent increase compared to KSh1.1 billion (US$9.17m) registered in the same period in 2021.

The profit growth was driven by 24 per cent growth in net interest income to KSh6.1 billion (US$50.82m) from KSh4.9 billion (US$40.83m).

This growth was in line with the loan book growth of 19.3 per cent closing at KSh75.6 billion (US$629.90m) up from KSh63.4billion (US$528.25m) in June 2021.

Digitization and income diversification saw the non-funded income grow by 21 per cent from KSh1.5 billion (US$12.50m) to KSh1.9 billion (US$15.83m).

“We continue to focus on supporting our customers across diverse sectors of our economy through partnerships, digitization and other innovative solutions that provide a compelling value proposition for them,” said Family Bank CEO Rebecca Mbithi.

“We have seen a growth in loans and advances as we continue to on-lend to our customers to support business and personal growth.”

Further, the Bank’s investments in efficiencies continued to pay off which saw the operating expenses increase marginally by 2 per cent to KSh3.6 billion (US$30m) in June 2022 up from KSh3.5 billion (US$29.16m) in June 2021.

Total deposits increased by 19 per cent to close at KSh90.7 billion (US$755.71m) from KSh76 billion (US$633.23m) in June 2021 while total assets increased by 24 per cent from KSh100 billion (US$830m) to KSh124 billion (US$1.03bn) in June 2022.

Jubilee Holdings records 26.6% profit

Meanwhile, insurance group Jubilee Holdings Limited has recorded a KSh3.3 billion (US$27.50m) net profit in the half-year ended 30 June 2022, a 26.6 per cent decline from KSh4.5 billion (US$37.49m) the holdings posted during a similar period the previous year.

The drop was attributed to uncertainties arising from the general election in the country, rising interest rates, global inflation as well as a reduction in foreign investment in the securities exchange.

The Group’s chairman Nizar Juma noted that despite the challenges the group faced in the environment it operates, it showed resilience in its business model while delivering strong profits and strengthening the balance sheet.

“We are continuously minimizing our operating costs to increase our overall value. We remain on track in executing our growth strategy and confident of our leadership position in the insurance sector across the East Africa region” said Juma.

The insurer’s gross written premium declined by 6 per cent to KSh20.9 billion (US$174.14m) despite transferring 62 per cent of its general business to Allianz in 2021.

Claims raised by customers increased by KSh460 million (US$3.83m) thus heavily affecting the medical business during the review period.

Even so, the drop in written premium was counterbalanced by the major growth in the long-term business to almost KSh3 billion (US$25m).

The group’s total assets increased by over KSh5 billion (US$41.66m) to KSh160.4 billion (US$1.34m) from KSh154.2 billion (US$1.28m) it posted in the previous period. Moreover, the shareholder’s fund grew by 6 per cent to KSh41.9 billion (US$349.11m).

The insurer’s board declared an interim dividend of KSh1 per share which will be payable on 11 October 2022.

Total shareholder’s security equity increased to KSh44.8 billion (US$373.27m) from the US$42.3 billion (US$352.44m) reported in H1 2021.

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