Family Bank Group has reported a 52.6 percent increase in net earnings to KSh1.6 billion for the three months to 31st March, underscoring a robust rebound in interest income and a rapidly expanding balance sheet as Kenya’s mid-tier lenders benefit from high-yielding government securities and resilient private sector credit demand.

Net profit rose from KES 1.0 billion recorded during a similar quarter in 2025. Total operating income climbed by 22.1 percent to KES 6.0 billion, driven by a 45.4 per cent surge in net interest income to KES 4.7 billon.

The performance marks an acceleration from the bank’s full-year 2025 results, when net profit stood at KES 5.4bn, and suggests the lender is capturing higher yields on both loans and government paper.

“Our first quarter results reflect the resilience of our business model and our commitment to delivering sustainable value,” said Nancy Njau, CEO, in a statement accompanying the results. “The continued growth in profitability, assets, and capital strength demonstrates the effectiveness of our long-term strategy.”

Total assets expanded by 32.3 percent to KES230.2 billion from KES174.0 billion a year earlier, driven by a 12.6 percent increase in the gross loan book to KES108.3 billion.

Customer deposits

Customer deposits rose by 27.1 per cent to KES 168.1 billion, signalling sustained market confidence despite a competitive deposit-taking environment.

The bank’s investment securities portfolio also swelled during the quarter under review. Holdings of Kenya government securities classified as available-for-sale jumped to KES 48.5 billion from KES 30.4 billion a year ago, while held-to-maturity government securities more than doubled to KES 46.6 billion from KES 20.8 billion. 

The bank additionally reported KES 1.6 billion in financial assets at fair value through profit and loss, a new line item not present in the prior year’s first quarter.

Interest income from government securities went up by 56 percent to KES 2.55 billion in the quarter, outpacing the 10 percent growth in loan interest income, reflecting the bank’s strategic shift towards high-yielding sovereign paper amid tight monetary conditions.

At the same time, operating costs increased modestly, up 7.6 percent to KES 3.7 billion, as the bank continued investing in technology and branch optimisation. What's more, staff costs increased by 50 percent to KES 1.6 billion, partly reflecting inflationary adjustments and hiring, while loan loss provisions rose to KES 405 million from KES 334 million a year earlier.

Family Bank’s asset quality showed marginal strain during the period with gross non-performing loans closing at KES 17.2 billion, down slightly from KES 17.6 billion at the end of December 2025, but net NPL exposure after discounting securities widened to KES 1.14 billion from KES 260 million a year ago.

Planned listing at NSE

Shareholders’ funds surged 42.2 percent to KES 34.7 billion, bolstered by a recently concluded private placement that was 131 percent subscribed, and capital retention ahead of a planned listing by introduction on the Nairobi Securities Exchange. Core capital rose to KES 26.0 billion, well above the statutory minimum of KES 3.0 billion.

The bank’s core capital to total risk-weighted assets ratio stood at 16.1 per cent, above the statutory 10.5 per cent requirement, while total capital to risk-weighted assets was 18.6 per cent against a 14.5 per cent minimum. The liquidity ratio climbed to 63.9 per cent, more than triple the 20 per cent regulatory floor.

Insider loans, which means credit facilities extended to directors, shareholders, associates and employees totalled KES 6.1 billion, down from KES 7.4 billion at the end of 2025 but up from KES 5.0 billion a year earlier. 

Contingent liabilities, including letters of credit and guarantees, stood at KES 17.0 billion, compared with KES 18.4 billion a year ago.

The bank said it remains focused on deepening financial inclusion and accelerating digital transformation.

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