Family Bank Limited has reported a robust performance for the first nine months of 2025, with profit after tax rising 55.8 per cent to Ksh3.5 billion compared to the same period last year.

The growth reflects the bank’s strong balance sheet, higher interest income, and prudent cost management.

“Family Bank Group posts a strong 55.8% growth in Profit After Tax, rising to KES 3.5B for the nine months ended 30 Sept 2025. A testament to strategic growth and sustained performance,” the bank posted on its X account.

The bank’s operating income increased 34 per cent to Ksh14.7 billion, while pre-tax profits grew 36.4 per cent year-on-year to Ksh4.5 billion. Earnings per share also recorded a notable increase, rising 41 per cent to Ksh2.49.

Family Bank’s loan book expanded 10.1 per cent to Ksh103.7 billion, supported by a focus on both retail and small and medium-sized enterprise (SME) lending. Total interest income grew 21.2 per cent to Ksh10.9 billion, driven by loans and investments in government securities. These investments also helped push the bank’s total assets up 24.1 per cent to Ksh202.5 billion.

CEO Nancy Njau said the results reflect the bank’s strategic focus on innovation, digital transformation, customer-centricity, and partnerships aimed at scaling SME lending.

“This positions Family Bank as the preferred bank for Biashara as we move towards our planned Nairobi Securities Exchange listing in 2026,” she said.

Deposits, digital, growth, recognition

Customer deposits grew 15.3 per cent to Ksh146.8 billion, signalling continued trust in the bank’s financial stability and service delivery. Non-funded income rose 14.4 per cent, boosted by digital transactions, which now account for over 92 per cent of all customer activity. The bank aims to increase this to 98 per cent, underlining its commitment to convenience and efficiency.

Family Bank has also expanded its customer base by 100,000 in the first nine months of 2025. The bank operates through three key subsidiaries: Pesa Pap Digital, offering secure mobile banking; Family Bank Bancassurance, providing comprehensive insurance solutions; and the Family Group Foundation, which drives social impact across the country.

The bank has actively tapped into diaspora remittances, which reached Ksh488 billion, with a significant share from North America.

In terms of strategic partnerships, Family Bank signed a €50 million (Ksh14.7 billion) agreement with the European Investment Bank to support women, youth, and SME financing. Such collaborations highlight the bank’s commitment to empowering underserved sectors and supporting economic growth.

The bank’s operating expenses increased 33 per cent, mainly due to staff costs and prudent provisioning for loan losses, which rose to Ksh1.3 billion. Its core capital strengthened to Ksh19.6 billion from Ksh14.7 billion, and the liquidity ratio remained well above the statutory requirement of 20 per cent at 54.4 per cent.

Macroeconomic conditions have supported the bank’s growth. The Central Bank Rate dropped to 9.25 per cent from highs of 12–13 per cent last year, allowing the bank to extend more credit to the private sector. Average annual inflation also stabilised around 3.65 per cent, protecting citizens’ purchasing power.

Family Bank has been recognised as the Best Tier 2 Bank at the Battle of Banks Africa competition for three consecutive years and received awards for excellence in customer experience from the Kenya Bankers Association.