Family Bank Reports 38.7% Increase in Profits after Tax in First Half of 2025
- The Family Bank Group posted a 38.7% rise in profit after tax, driven by revenue growth and cost management
- Family Bank CEO Nancy Njau attributed the strong performance to increased customer deposits, supported by two main factors
- Family Bank’s net interest income rose 39.9% to KSh 6.9 billion, as income from government securities and loans increased
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Elijah Ntongai, an editor at TUKO.co.ke, has over four years of financial, business, and technology research and reporting experience, providing insights into Kenyan, African, and global trends.
The Family Bank Group has reported a 38.7% growth in profit after tax for the six months ended June 30, 2025.
Source: Twitter
The bank posted KSh 2.2 billion in the first half of 2025, compared to KSh 1.6 billion in the same period last year.
The strong performance was attributed to sustained revenue growth, prudent cost management, and a solid balance sheet that highlighted the bank’s resilience in a challenging economic environment.
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Family Bank's financial performance
Speaking during the release of the half-year results, Family Bank CEO Nancy Njau credited the performance to the bank’s strategic execution and customer-first approach.
“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,” Njau said.
Family Bank’s total assets surged 21.8% to KSh 192.8 billion, driven by a 10.4% expansion in the loan book to KSh 100.9 billion.
Net interest income rose by 39.9% to KSh 6.9 billion, supported by a 48.7% increase in earnings from government securities and a 14.8% rise in income from loans and advances, which closed at KSh 7.7 billion.
"Currently, 88% of our resources have been strategically deployed into interest-earning assets, an indication of our strong focus on maximising returns and building a healthy, income-generating balance sheet," the CEO said.
Family Bank deposits and expenses
Customer deposits climbed 25.7% to KSh 149.7 billion, boosted by the bank’s branch optimisation strategy and network expansion. During the review period, Family Bank opened its 96th branch in Kilifi.
Operating expenses increased by 36.3% to KSh 6.7 billion, up from KSh 4.9 billion, largely due to investments in marketing, branch expansion, and digital infrastructure upgrades.
Family Bank's non-performing loans
The bank also reported a 15.4% decline in net non-performing loans, supported by improved asset quality and recovery efforts. To reinforce its position, loan loss provisions rose 68.4% to KSh 663.5 million.
“As part of prudent risk management, we increased our provisions to cushion against sector-wide risks and safeguard our asset base,” said Family Bank Chief Financial Officer Paul Ngaragari.
Core capital rose to KSh 16.5 billion from KSh 14.5 billion, while the liquidity ratio strengthened to 53.1%, more than double the statutory minimum of 20%.
Source: Twitter
Family Bank benefits from digital growth
The bank also reported that over 90% of transactions are now conducted via digital channels, underscoring the impact of its ongoing digital transformation.
"This year, our strong digital presence has enabled us to reach regions in Kenya where our physical branches are not yet established," Njau added.
Notably, Family Bank's growth has been supported by new funding partnerships with British International Investment and the European Investment Bank, which enhanced financing for small and medium enterprises.
Did the Consolidated Bank report profits?
In other news, the Consolidated Bank of Kenya has returned to profitability.
The bank posted a profit after tax of KSh 21.6 million for the half year ended June 30, 2025, compared to a loss of KSh 76.8 million in the same period last year.
The turnaround was driven by transformational measures focused on innovation and SME support, alongside stronger cost control and operational efficiencies that cut expenses by 4%.
Total assets rose 19% to KSh 18.4 billion, while customer deposits increased 8% to KSh 12 billion, pushing liquidity above 30%, well over the statutory minimum.
The net interest income grew 21% to KSh 551 million despite a slight dip in non-funded income.
Proofreading by Mercy Nyambura, copy editor at TUKO.co.ke.
Source: TUKO.co.ke
