By Eddah Waithaka
Family Bank Group posted a massive 38.7% jump in half-year profits, driven by aggressive lending and strategic investments that significantly expanded its balance sheet.
The bank announced a Profit After Tax of KES 2.2 billion for the six months ended June 30, 2025, a sharp increase from the KES 1.6 billion recorded in the same period last year.
Strong revenue growth and disciplined cost management powered the performance, underscoring the bank’s resilience in a dynamic market.
The group’s total assets grew by 21.8% to KES 192.8 billion, fueled by a 10.4% expansion of its loan book to KES 100.9 billion.
This lending growth received a major boost from recent funding partnerships with international financiers British International Investment and the European Investment Bank, which have channeled more capital to Kenyan SMEs.
Net interest income surged by 39.9% to KES 6.9 billion, buoyed by a spectacular 48.7% growth in income from government securities and a solid 14.8% rise in interest from loans and advances.
“Our strong half-year results reflect strategic clarity, operational excellence, and the trust our customers place in us,” said Family Bank CEO Nancy Njau during the results announcement.
She highlighted the bank’s 2025–2029 strategy, which focuses on scaling SME lending, driving digital transformation, and delivering a customer experience that positions Family Bank as a top financial partner.
The bank also attracted significant customer deposits, which rose 25.7% to KES 149.7 billion. This growth was supported by a branch optimization strategy that included the opening of its 96th branch in Kilifi.
However, the period also saw operating expenses climb 36.3% to KES 6.7 billion, driven by strategic investments in marketing, branch network expansion, and digital infrastructure modernization.
In a move to fortify its financial health, the bank aggressively reduced its net non-performing loans by 15.4% through improved asset quality and recovery efforts.
It also prudently increased its loan loss provisions by 68.4% to KES 663.5 million to cushion against potential sector risks.
The bank’s core capital grew to KES 16.5 billion, up from KES 14.5 billion, while its liquidity ratio strengthened to 53.1%—far exceeding the statutory requirement of 20%.
Digital channels continued to dominate customer transactions, with over 90% of all transactions conducted outside branches, highlighting the success of the bank’s ongoing digital transformation.
