Family Bank reported a sharp rise in profitability for the year ended 30 March 2025, highlighting resilience in Kenya banking sector despite mounting credit risks.
The Nairobi-based lender posted a 55.4% increase in profit after tax to KSh5.38 billion, up from the previous year. The growth was largely supported by a 46.1% jump in net interest income and continued expansion in non-interest revenue streams.
Operating income rose 34% to KSh20.2 billion, reflecting stronger lending margins and increased transaction-based income. Earnings per share climbed to KSh3.93 from KSh2.65 a year earlier.
Family Bank financial performance points to a strategic focus on diversified income channels and improved operational efficiency as it strengthens its position in the competitive banking sector.
Total assets increased 23.8% to KSh208.69 billion, while customer deposits rose 19.9% to KSh151.88 billion, signaling sustained customer confidence. Net loans and advances grew 14% to KSh105.90 billion, driven by lending to retail and small businesses.
Chief executive officer Nancy Njau said the lender remains focused on co-creating solutions with customers while expanding financial inclusion.
Asset quality concerns persist
Despite strong earnings, asset quality remains a concern. Gross non-performing loans increased 21.6% to KSh17.56 billion, pushing the non-performing loan ratio to 16.6%.
Loan loss provisions more than doubled to KSh1.97 billion, reflecting a cautious approach amid economic uncertainty and rising credit risk.
The bank said it is strengthening credit risk management frameworks to address the increase in defaults.
Family Bank also continued its social impact initiatives, investing KSh540 million in education scholarships and community programs, reinforcing its long-term development agenda.
Looking ahead, the lender plans to list on the Nairobi Securities Exchange by June, a move expected to strengthen capital and expand investor participation.
