BUSINESS

Family Bank Half-Year Profit Surges to Ksh 2.2 Billion, Lifted By Interest Income

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Family Bank CEo Nancy Njau
Family Bank CEO, Nancy Njau.
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Family Bank Group has posted a 38.7% increase in profit after tax to Ksh 2.2 billion for the six months ended 3oth June, 2025, up from Ksh 1.6 billion in the same period last year. The performance was driven by sustained revenue growth, prudent cost management and a robust balance sheet, underscoring its operational resilience in a dynamic economic environment.

Family Bank’s balance sheet strengthened significantly, with total assets growing by 21.8% to Ksh 192.8 billion. This was driven by a double-digit expansion of 10.4% in the loan book to Ksh 100.9 billion, supported by recent funding partnerships with British International Investment and the European Investment Bank, which have expanded access to financing for SMEs.

The bank’s net interest income surged by 39.9% to Ksh 6.9 billion, buoyed by a 48.7% growth in interest income from Government securities and a 14.8% increase in interest income from loans and advances which closed at Ksh 7.7 billion

Speaking during the release of the results, Family Bank CEO, Nancy Njau, attributed the performance to strategic execution and customer focus.

> No Dividend For Liberty Kenya Shareholders as Profit Plunges

“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 for individuals and businesses across Kenya,” she said.

Customer deposits rose by 25.7% to Ksh 149.7 billion, boosted by the bank’s branch optimisation strategy, including continuous expansion. During the period, the bank opened 96th branch in Kilifi.

Operating expenses saw a notable rise of 36.3%, climbing from Ksh 4.9 billion to Ksh 6.7 billion. This increase was primarily driven by strategic investments in marketing initiatives to strengthen brand visibility, the expansion of the branch network, and the modernisation of digital infrastructure.

The Bank recorded a 15.4% reduction in net non-performing loans, driven by improved asset quality and sustained recovery efforts. “To further reinforce this progress and cushion against potential sector-wide risks, we increased our loan loss provisions by 68.4% to Ksh 663.5 million as a prudent risk management and proactive approach to safeguarding assets,” said Family Bank Chief Financial Officer Paul Ngaragari.

Core capital stood at Ksh 16.5 billion, up from Ksh 14.5 billion, while the Bank’s liquidity ratio strengthened to 53.1%, well above the statutory requirement of 20%, reflecting strong capital adequacy.

> Absa Bank Half-Year Net Profit Grows to Ksh 11.7 Billion

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BT Reporter -

editor [at] businesstoday.co.ke

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