BUSINESSNEWS

Family Bank Q1 2026 Net Profit up 53% to KSh1.65Bn

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Family bank CEO Nancy Njau
Family Bank CEO Nancy Njau
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Family Bank, lined up to list at the Nairobi Securities Exchange(NSE), posted a 53% rise in net profit to KSh 1.65 Billion, its loan book expanding by 12.6% to KSh 108.4 Billion, the lender placing some KSh 100.4Billion in Government Securities, a significant 96% growth.

Family Bank Q1 Pre-Tax Profit was up 55% to KSh 2.35 Billion with Earnings per Share(EPS), which measures profitability was up 19% to KSh 0.96.

Family Bank total operating income increased from KSh 5.2 Billion in Q1 2025 to KSh 6.02 Billion at the end of March 31st 2026. The Bank increased loan loss provisions from KSh 333.8 million to KSh 404.9 million in Q1 2026, an indication of a tough business environment for lenders.

The lender’s balance sheet size grew from KSh 174.04 Billion in Q1 2025 to KSh230.21 Billion in Q1 2026 with loans and advances to customers rising to KSh 108,397,534,000 from KSh 96,239,281,000 in Q1 2025. Customer Deposits increased from KSh133,004,324,000 to KSh168,866,890,000 in Q1 2026.

The lender’s Net interest income was up 45.5% to KSh 4.72Bn from KSh 3.25Bn in Q1 2025 while Non-interest income shrunk 22.4% to KSh 1.32Bn.

Operating expenses were up 7.6% to KSh 3.71Bn, well below rate of income growth, registering a strong cost efficiency ratio. As the lender prepares to list at the Nairobi Bourse, its borrowed funds grew significantly to KSh 14.13Bn, the highest on record.

The results follow an oversubscribed December 2025 private placement that saw Family Bank raise KSh8.00Bn against a KSh6.09Bn target.

Family Bank Corporate Profile

Family Bank was established in 1984 as Family Bank Building Society with just one branch. It has since grown and became a fully-fledged commercial bank in May 2007. The Bank is regulated by the Central Bank of Kenya (CBK) and has 95 branches in 32 counties across Kenya. As of December 2023, it was the fourth-largest Bank in Kenya in terms of geographical reach.

Family Bank has a strong retail customer base, focuses on SME banking and has a vision to positively transform people’s lives in Africa. The Bank has over 1.2 million customers, 6,000 bank agents and 75,000 merchants across Kenya.

The lender is renowned for its digital innovation, being the first to introduce paperless banking through smart card technology. This allows customers to transact without filling in deposit or withdrawal slips. Family Bank is also a pioneer in mobile banking with its PesaPap mobile app, which is unparalleled in the market.

The  lender provides retail and consumer products, SME, agribusiness, corporate banking, trade finance, and insurance products. In line with its county banking roadmap, the Bank is leveraging the country’s devolved governance system to attract more customers. This strategy aims to utilise the opportunities the devolved governance structure offers, positioning Family Bank as a one-stop-shop for all banking needs.

ALSO READ: Family Bank Net Earnings Up 55.4% to KSh 5.38Bn

 

 

Written by
JACKSON OKOTH -

Jackson Okoth writes for Business Today. He specializes in capital and money markets, energy sector, manufacturing, real estate, co-operatives sector, technology and agriculture. He can be reached on email at editor [at] businesstoday.co.ke

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