Family Bank Posts 38.7% Profit Growth on Strong SME Lending and Digital Expansion
NAIROBI, Kenya, August 19, 2025 – Family Bank Group has reported a 38.7 percent rise in profit after tax for the first half of 2025, posting KES 2.2 billion compared to KES 1.6 billion in the same period last year.
The growth was driven by robust revenue streams, prudent cost controls, and a strong balance sheet, reflecting the lender’s resilience in a dynamic economic environment.
The Bank’s total assets surged by 21.8 percent to KES 192.8 billion, supported by a 10.4 percent expansion in the loan book to KES 100.9 billion. This performance was buoyed by funding partnerships with the British International Investment and the European Investment Bank, which have expanded credit to small and medium-sized enterprises (SMEs).
Net interest income grew by 39.9 percent to KES 6.9 billion, largely supported by a 48.7 percent jump in returns from government securities and a 14.8 percent rise in interest income from loans and advances, which closed at KES 7.7 billion.
Speaking at the release of the results, Family Bank CEO Nancy Njau said the strong performance reflected the success of the Bank’s strategy and growing customer trust.
“Our half-year results are a testament to strategic clarity, operational excellence, and customer confidence. As we roll out our 2025–2029 strategy, we are prioritising SME lending, innovation, digital transformation, and customer experience to position Family Bank as the preferred financial partner across Kenya,” she noted.
Customer deposits rose by 25.7 percent to KES 149.7 billion, driven by branch optimisation efforts and continued expansion, including the opening of the Bank’s 96th branch in Kilifi.
Operating expenses increased by 36.3 percent to KES 6.7 billion, reflecting investments in marketing, branch expansion, and modernisation of digital infrastructure. Despite this, the Bank reduced net non-performing loans by 15.4 percent, signalling improved asset quality and stronger recovery efforts.
Chief Financial Officer Paul Ngaragari said the lender raised loan loss provisions by 68.4 percent to KES 663.5 million as a precautionary step. “This ensures we are well-positioned to cushion against potential sector-wide risks and safeguard our assets,” he explained.
Family Bank’s capital base also strengthened, with core capital rising to KES 16.5 billion and its liquidity ratio improving to 53.1 percent, well above the statutory minimum of 20 percent. Notably, over 90 percent of transactions were conducted on digital channels, underscoring the Bank’s progress in digital banking adoption.
