Family Bank has reported a notable 15.4 per cent increase in its profit before tax, reaching Sh2.32 billion for the first half of 2024.

This growth, compared to the same period in 2023, is primarily attributed to a significant rise in interest income.

During this period, the bank's net interest income saw a substantial increase of 12.7 per cent, climbing to Sh4.9 billion.

However, the bank acknowledged that this growth was somewhat tempered by the rising cost of funding.

As stated in their H1 financial report, "This growth was muted by the higher cost of funding witnessed during the period which saw a 46 per cent increase in interest expense in line with the high cost of funding witnessed in the first half of 2024."

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The bank's total assets experienced a robust growth of 19.2 per cent, reaching Sh158.3 billion, compared to Sh132.8 billion in June 2023.

This expansion was largely driven by an 18 per cent increase in deposits, which grew from Sh100.8 billion to Sh119 billion.

The additional liquidity enabled the bank to expand its lending activities.

Loans and advances rose to Sh91.4 billion, up from Sh86.5 billion in the corresponding period of 2023.

However, the bank noted a subdued demand for credit due to prevailing macroeconomic conditions.

As a result, Family Bank chose to channel a significant portion of its liquidity into government securities, which saw a dramatic 69 per cent increase, rising from Sh24.8 billion to Sh41.9 billion.

The bank's strategic allocation of resources, coupled with prudent financial management, has underpinned its strong performance in the first half of 2024, setting a solid foundation for the remainder of the year.