Family Bank, one of Kenya’s most prominent mid-tier lenders, has announced a robust performance for the first half of 2025, with a 39% surge in its profit after tax. The bank’s profit reached KES 2.2 billion ($17 million), a significant increase from the same period last year.
The impressive financial results are a testament to the bank’s strategic focus on expanding its core business operations. According to a statement from the bank, the profit growth was fueled by a substantial 26% rise in customer deposits, which hit KES 150.4 billion ($1.17 billion), and a 20.2% growth in its loan book to KES 100.9 billion ($782 million).
Family Bank CEO Nancy Njau attributed the success to “strategic clarity, operational excellence, and the trust our customers place in us.” The bank’s net interest income also saw a healthy increase, climbing to KES 6.9 billion ($53.5 million), a result of higher earnings from both government securities and customer lending. The bank’s total balance sheet expanded by 21.8% to KES 192.7 billion ($1.5 billion), demonstrating strong asset growth.
Despite the positive earnings, the bank’s operational costs and loan-loss provisions increased. Operating expenses rose by 36% to KES 6.7 billion ($52 million), a result of strategic investments in expanding its branch network and digital platforms. Additionally, loan-loss provisions nearly doubled to KES 664 million ($5.1 million), which the bank’s Chief Financial Officer, Paul Ngaragari, said was a proactive measure to strengthen its financial buffers against potential loan defaults. The bank noted that its net exposure to non-performing loans has reduced by 15%.
Related: Family Bank and EIB Global Seal Ksh 14.7 Billion Pact to Support Women and Youth-Led Businesses
