Family Bank Group experienced a 38.7 percent increase in net earnings to KES2.2 billion for the six months ended June 30, 2025, attributable to rise in revenue on increased lending.

In a market update on Tuesday, the Group also credited the strong performance to cost management measures, and a strong balance sheet.

During the half, the bank saw total assets grow by 21.8 percent to KES192.8 billion powered by a 10.4 percent growth in loans and advances, which closed the period at KES100.9 billion.

“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,” said CEO Nancy Njau.

The Bank recorded a 15.4 percent reduction in net non-performing loans, driven by improved asset quality and sustained recovery efforts.

“To further reinforce this progress and cushion against potential sector-wide risks, we increased our loan loss provisions by 68.4 percent to KES 63.5 million as a prudent risk management and proactive approach to safeguarding assets,” said Family Bank Chief Financial Officer Paul Ngaragari.

Customer deposits

In the six months to June, the lender’s net interest income surged by 39.9 percent to KES6.9 billion, powered by a 48.7 percent increase in interest income from Government securities and a 14.8 percent jump in interest income from loans and advances which closed at KES7.7 billion.

Customer deposits rose by 25.7 percent to KES149.7 billion, boosted by the Bank’s branch optimisation strategy, including continuous expansion.

Operating expenses saw a notable rise of 36.3 percent to KES6.7 billion primarily driven by strategic investments in marketing to strengthen brand visibility, expanding branch network, and the modernization of digital infrastructure.

Core capital stood at KES16.5 billion, up from KES14.5 billion, while the bank’s liquidity ratio strengthened to 53.1 percent, well above the statutory requirement of 20 percent, reflecting strong capital adequacy.

To bolster its onward lending to the small, and micro enterprises (SMEs), the lender signed a $20 million (KES2.6 billion) funding partnership with British International Investment and the European Investment Bank in late July.

The bank said at least 75 percent of the funding will be directed towards financing trade for MSMEs, while half will support women-led businesses and agribusiness-related enterprises. 

Targeted enterprises include those engaged in agricultural production, processing, logistics, infrastructure, and broader value chain activities.

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