Family Bank has announced a net profit of Ksh 5.4 billion for the fiscal year 2025, a significant 55.4% rise from Ksh 3.5 billion the previous year. The good result reflects rapid lending expansion and increased income creation.
Profit before tax climbed even quicker, by 61.6% to Ksh 6.3 billion, highlighting the bank’s strong profits trend this year.
The results come as the lender begins a new five-year business plan centered on digital transformation and improved client experience.
Balance Sheet Expansion Drives Growth
Family Bank’s balance sheet has grown drastically, with total assets increasing by 23.8% to KSh 208.7 billion.
Customer deposits climbed by 20%, ensuring a consistent financing source, while shareholder funds increased by 46%. This was aided by a successful Ksh 8 billion capital raise via private placement, which was 131% oversubscribed.
The bank’s loan book also grew steadily. Net loans and advances climbed by 14% to Ksh 105.9 billion, driven mostly by increased lending to micro, small, and medium-sized companies (MSMEs).
At the same time, investment in government securities increased by 45% to Ksh 74 billion, demonstrating a balanced asset allocation approach.
Income Growth Supported by Lending Activity
The rise of interest-earning assets resulted in significant income growth.
Net interest income increased by 46% to Ksh 15.6 billion, indicating greater rates from loans and investments. Non-interest income increased at a slower rate of 5% to Ksh 4.6 billion.
Overall, the bank’s income profile remains focused on its core lending activity, with gradual diversification into other revenue streams.
Digital Strategy and Partnerships Take Center Stage
Family Bank CEO Nancy Njau described 2025 as a pivotal year for the bank, as it began implementing its new strategic strategy, laying the groundwork for long-term development and competitiveness in a rapidly changing financial sector.
“The year 2025 marked a pivotal start of our five-year strategic plan which is anchored on compelling customer propositions and digital transformation,” she said.
The bank has continued to invest in digital capabilities and optimize its distribution network to improve service delivery and product offerings, reflecting a deliberate shift towards efficiency, accessibility, and enhanced customer experience.
Njau also pointed to internal and external enablers of growth, noting that both people and partnerships played a critical role in delivering the year’s strong performance.
“Our continued investments in our employees through capacity building and enabling work environment greatly contributed to the good performance. Partnerships with Development Finance Institutions strengthened our capacity to lend to key sectors such as SMEs, agribusiness and manufacturing,” she added.
Strong Liquidity and Capital Position
Family Bank maintained a strong financial position throughout the year.
The liquidity ratio stood at 60.9%, significantly over the statutory requirement, indicating that the bank is well-positioned to satisfy its obligations.
Furthermore, all capital adequacy ratios were well above regulatory standards, indicating a robust cushion to sustain future expansion.
Family Bank is well-positioned for long-term growth, with a stronger balance sheet, increased profitability, and a defined digital strategy.
The lender’s sustained emphasis on MSME finance, digital innovation, and strategic alliances is expected to play an important role in propelling its next phase of growth.
