Family Bank Posts KES 1.5B Profit in Q1 2025, Fueled by Digital Growth and Strategic Expansion
Family Bank Chair Lazarus Muema, CEO Nancy Njau and Ag. Chief Finance Officer Paul Ngaragari during the Bank’s Q1 2025 financial results media and investor briefing, where the Bank reported a 15.4% increase in Profit Before Tax to KES 1.5 billion for the first three months of the year.
Family Bank Group has kicked off the year on a strong note, reporting a 15.4 percent rise in Profit Before Tax to KES 1.5 billion for the first quarter ended March 31, 2025, up from KES 1.3 billion posted in the same period last year.
The improved performance was attributed to robust growth in interest income, a resilient balance sheet, and disciplined cost control measures. The Group’s total assets surged by 19.2 percent to KES 174 billion, buoyed by a 10.1 percent increase in the loan book, which closed the quarter at KES 96.2 billion.
Additionally, investment in Government securities grew by 3.3 percent.Net interest income recorded a substantial 32.6 percent growth to KES 3.2 billion, largely supported by a 50.6 percent rise in returns from Government securities and a 14.1percent increase in interest income from loans.
The lender also posted a 32.1 percent rise in non-funded income, underpinned by increased customer transactions, enhanced digital services, and growing uptake of its product offerings.
Over 90 Percent of transactions during the quarter were conducted through digital channels, underscoring the success of the Bank’s digital transformation journey. Furtherly, the Group’s Bancassurance business continued to register significant growth, reinforcing its diversification strategy.
Speaking at an investor briefing, Family Bank CEO Nancy Njau hailed the Bank’s performance as a testament to its strategic direction. “This is the first quarter under our new strategic plan. The results reflect our strategic clarity and our continued commitment to building strong relationships with our customers to deliver long-term shareholder value,” Njau stated.
She added that the 2025–2029 strategy will focus on innovation, digital transformation, customer-centric service, and sustainable growth. “We are positioning Family Bank as the ‘Preferred Bank for Biashara’ with a renewed focus on retail and SME segments,” she noted.
Customer deposits rose by 19.8 percent to KES 132.3 billion, bolstered by the Bank’s branch optimization strategy and continuous investments in digital platforms and customer experience.
Despite the gains, operating expenses rose by 41.5 percent, primarily due to a 59.6perceny increase in loan loss provisions and a 10.9 percent rise in staff costs, attributed to capacity-building efforts and branch network enhancements.
Family Bank’s core capital increased to KES 15.9 billion, with a core capital ratio of 13.22 percent, well above regulatory minimums. Liquidity remained strong at 46.9 percent, highlighting the Bank’s solid financial health and ability to meet its obligations.
