Family Bank Group has reported a strong performance for the first half of 2025, posting a 38.7 per cent growth in Profit After Tax to KES 2.2 billion, up from KES 1.6 billion in the same period last year.
The impressive results were anchored on sustained revenue growth, prudent cost management, and a robust balance sheet, underscoring the lender’s operational resilience in a challenging economic climate.
Strong Balance Sheet and Asset Growth
Family Bank’s total assets expanded by 21.8 per cent to KES 192.8 billion, driven by double-digit growth in its loan book, which rose 10.4 per cent to KES 100.9 billion.
The growth was supported by funding partnerships with British International Investment and the European Investment Bank, which have boosted access to financing for SMEs.
Surge in Interest Income
Net interest income jumped 39.9 per cent to KES 6.9 billion, supported by:
A 48.7 per cent rise in income from Government securities.
A 14.8 per cent increase in interest income from loans and advances, which closed at KES 7.7 billion.
CEO: Strategy and Customer Focus Paying Off
Family Bank CEO Nancy Njau attributed the strong performance to the Bank’s customer-centric strategy and disciplined execution.
“Our strong half-year results reflect strategic clarity, operational excellence, and the trust our customers place in us. This momentum is further supported by our 2025–2029 strategy, which focuses on scaling SME lending, driving innovation and digital transformation, and delivering a customer experience that positions Family Bank as the financial partner of choice,” she said.
Deposit Growth and Network Expansion
Customer deposits surged 25.7% to KES 149.7 billion, supported by the Bank’s branch optimisation strategy and continuous expansion. During the period, Family Bank opened its 96th branch in Kilifi, cementing its nationwide footprint.
Rising Costs from Expansion and Modernisation
Operating expenses increased by 36.3%, climbing to KES 6.7 billion from KES 4.9 billion. This was largely attributed to strategic investments in:
Marketing initiatives to strengthen brand visibility.
Branch network expansion.
Modernisation of digital infrastructure.
Asset Quality and Risk Management
The Bank reported a 15.4 per cent decline in net non-performing loans, reflecting improved asset quality and recovery efforts.
To reinforce this progress, loan loss provisions rose by 68.4 per cent to KES 663.5 million, a proactive move to cushion against sector-wide risks.
“We remain committed to safeguarding our assets while ensuring business continuity and resilience in a dynamic market environment,” said CFO Paul Ngaragari.
Strong Capital and Liquidity Position
Core capital increased to KES 16.5 billion from KES 14.5 billion, while the liquidity ratio improved to 53.1.per cent, well above the regulatory minimum of 20 per cent.
Digital Channels Driving Customer Experience
The Bank noted that over 90 per cent of transactions were conducted via non-branch channels, underscoring the growing importance of digital platforms in enhancing customer convenience.
Outlook
With a strengthened balance sheet, robust liquidity, and continued investment in SME lending and digital transformation, Family Bank is positioning itself as a leading financial partner for individuals and businesses across Kenya.