Family Bank Group has reported a strong start to the year with a 15.4 percent rise in Profit Before Tax (PBT), hitting KES 1.5 billion for the first quarter of 2025, up from KES 1.3 billion in the same period last year. The performance was underpinned by solid growth in interest income, a robust balance sheet, and effective cost controls.
Total assets for the lender surged by 19.2 percent to KES 174.0 billion, primarily driven by a 10.1 percent expansion in the loan portfolio, which closed the quarter at KES 96.2 billion. The Bank also increased its investment in government securities by 3.3 percent, contributing to higher interest earnings.
Net interest income rose significantly by 32.6 percent to KES 3.2 billion, supported by a 50.6 percent jump in interest income from government securities and a 14.1 percent increase in loan interest income. Meanwhile, non-funded income grew by 32.1 percent, buoyed by increased customer transactions, improved digital platforms, and expanded uptake of financial products, including a booming Bancassurance segment. Over 90 percent of the Bank’s transactions were conducted via digital channels during the quarter.
Speaking during an investor briefing, Family Bank CEO Nancy Njau attributed the performance to the Bank’s continued evolution and execution of its new five-year strategic plan.
“This is the first quarter of our new strategic plan, and these results reflect our strategic clarity and the deep relationships we continue to build with our customers,” said Njau. “Our 2025–2029 strategy focuses on innovation, digital transformation, customer-centricity, data-driven decision-making, and sustainable growth.”
She added that the Bank’s goal to become the “Preferred Bank for Biashara” is rooted in a refined customer segmentation strategy, with particular focus on the retail and SME sectors.
Customer deposits grew by 19.8 percent year-on-year to KES 132.3 billion, a result of continued investments in digitization and customer experience, as well as the Bank’s branch optimization programme aimed at increasing financial inclusion.
Operating expenses rose by 41.5 percent in the quarter, largely due to a 59.6 percent spike in loan loss provisions and a 10.9 percent increase in staff costs. The latter was attributed to the Bank’s continued investment in staff development and branch network optimization.
On the capital front, the Bank’s core capital rose to KES 15.9 billion from KES 14.0 billion in Q1 2024. Its core capital ratio stood at 13.22 percent, well above regulatory minimums, signaling strong capital adequacy. The liquidity ratio remained solid at 46.9 percent, demonstrating the Bank’s ability to meet short-term obligations and sustain lending momentum.
The strong Q1 performance positions Family Bank for continued growth as it rolls out its 2025–2029 strategic plan focused on digital expansion and deepening support for Kenya’s SME and retail sectors.