- Family Bank's profit grew to Sh2.4 billion from Sh1.6 billion in 2020
- I&M and BK Group reported 2.4 and 35% growth in net earnings respectively
Family Bank Group's net earnings for the year ended December 31, 2021, grew 42 per cent on increased interest income and low operating costs.
The lender's profit after tax rose to Sh2.4 billion during the financial period under review compared to Sh1.6 billion in 2020.
Its gross earnings jumped to Sh3.3 billion, a 131.6 per cent growth compared to the previous year.
Family Bank CEO, Rebecca Mbithi attributed the overall growth to resilience and recovery of their customers from the Covid-19 pandemic effects.
“2021 was a recovery year for the bank. In 2021, we continued to support our customers, increased and accelerated loan disbursements and achieved growth in all our key parameters," said Mbithi.
The Group’s total assets grew by 23 per cent to Sh 111.7 billion driven by net loans and advances which expanded by 18.2 per cent to Sh 66.9 billion.
The lender’s investment in government securities increased by 45 per cent to Sh 24.7 billion on account of improved liquidity. Customer deposits increased by 17 per cent to Sh 81.9 billion.
The bank’s net interest income grew by 20.8 per cent to Sh 7.8 billion from Sh 6.4 billion in the year 2020.
Total non-funded income grew by 12.9 per cent to Sh3 billion for the year under review.
On the back of the strong performance, the directors have proposed Sh 1.1 billion (Sh 0.83 per share) dividend pay-out subject to the shareholders’ approval during the Annual General Meeting to be held on April 29.
Meanwhile, I&M Holdings registered a 2.4 percent rise in net profit for the year ended December 2021, supported by interest income from loans and investment in government securities.
According to the firm's financial results, net profit grew to Sh8.6 billion compared to Sh8.4 billion in the previous year.
However, the growth was impeded by a 40.5 per cent rise in operating costs to Sh17.7 billion.
The bank has recommended a 33.3 per cent rise in dividend payout to Sh1.50 per share or an aggregate of Sh2.48 billion compared to Sh1.125 per share and Sh1.86 billion in 2020.
"The Group made key investments during the period under review to help us position ourselves better for future growth through enhanced resilience initiatives and optimisation of our operations,” I&M Group chairman Daniel Ndonye said.
The Bank of Kigali, listed on the Nairobi and Kigali stock exchanges announced a 35 per cent increase in net profit to Sh5.8 billion for the year ended December 2021 driven by a 20.8 per cent rise in total interest income and double-digit growth in all key performance metrics.
It recorded a 41.4 per cent year-on-year growth in non-interest income to Sh4.2 billion, on the back of increased trade volumes and economic activities.
“We recorded another strong performance in 2021, reflecting economic recovery with improved asset quality and profitability,” Bank of Kigali, chief executive officer, Diane Karusisi said.
She added that the group delivered earnings per share of Sh6.44 and a full dividend of Sh3.22 per ordinary share in a show of strong commitment to stakeholders.