Family Bank earnings surge as assets cross 200B mark

Family Bank Group has posted a sharp rise in profitability for the year ended 2025, underpinned by strong growth in lending, a solid capital raise and increased income from interest-earning assets.

The lender’s profit after tax climbed by 55.4 per cent to KSh5.4 billion, up from KSh3.5 billion a year earlier, while profit before tax rose even faster by 61.6 per cent to KSh6.3 billion, signalling improved operational efficiency and revenue expansion.

The performance was driven largely by a strengthened balance sheet and aggressive growth in interest-generating assets. Total assets expanded by 23.8 per cent to KSh208.7 billion, supported by a 20 per cent rise in customer deposits and a 46 per cent jump in shareholders’ funds.

A key highlight during the year was the bank’s successful KSh8 billion capital raise through a private placement, which was oversubscribed by 131 per cent—an indication of strong investor confidence in the lender’s growth strategy.

Loan book growth remained robust, with net loans and advances rising by 14 per cent to KSh105.9 billion, largely driven by increased lending to micro, small and medium-sized enterprises (MSMEs). At the same time, investment in government securities surged by 45 per cent to KSh74 billion, reflecting a balanced approach to risk and returns.

The expansion in interest-earning assets translated into stronger income streams, with net interest income increasing by 46 per cent to KSh15.6 billion. Non-interest income, however, grew at a slower pace of 5 per cent to KSh4.6 billion, pointing to continued reliance on core lending activities.

Chief Executive Officer Nancy Njau said the results mark a strong start to the bank’s new five-year strategic plan, which focuses on digital transformation and customer-centric growth.

“The year 2025 marked a pivotal start of our five-year strategic plan anchored on compelling customer propositions and digital transformation,” she said. “We have continued to invest in digital capabilities and optimise our distribution network to enhance customer experience and strengthen our product offering.”

Njau added that partnerships with development finance institutions have expanded the bank’s lending capacity to key sectors such as SMEs, agribusiness and manufacturing—segments seen as critical drivers of economic growth.

The lender also maintained strong liquidity and capital buffers, with its liquidity ratio standing at 60.9 per cent—well above statutory requirements—while capital adequacy ratios remained comfortably above regulatory thresholds.

The results position Family Bank among the mid-tier lenders posting accelerated growth, as the sector continues to benefit from improved credit demand and strategic investments in digital banking.