Family Bank reported a sharp rise in full year earnings for 2025, underscoring strong income growth and balance sheet expansion despite mounting asset quality pressures.
The Nairobi based lender said profit after tax climbed 55.4% to KSh5.38 billion, up from KSh3.46 billion a year earlier. The performance was largely driven by a surge in net interest income and improved operating efficiency.
Net interest income rose 46.1% to KSh15.6 billion as asset yields outpaced funding costs. Total operating income increased 34.1% to KSh20.2 billion, reflecting both lending growth and diversification into non interest income streams.
Earnings per share rose to KSh3.93 from KSh2.65 in 2024, signaling improved returns for shareholders.
Growth and risks
Family Bank total assets expanded 23.8% to KSh208.69 billion, supported by steady loan book growth and increased customer deposits.
Customer deposits rose 19.9% to KSh151.88 billion, reflecting growing customer confidence. Net loans increased 14% to KSh105.90 billion, driven by lending to small and medium sized enterprises and retail borrowers.
Despite the strong financial performance, asset quality remained a concern. Gross non performing loans rose 21.6% to KSh17.56 billion, pushing the ratio to 16.6%.
Loan loss provisions more than doubled, increasing 174.8% to KSh1.97 billion, as the bank moved to cushion itself against potential defaults.
Chief Executive Officer Nancy Njau said the bank will continue focusing on co creating solutions with customers while investing in communities.
She highlighted initiatives such as KSh540 million allocated to scholarships and social programs as part of the lender broader impact agenda.
Looking ahead, Family Bank plans to list its shares on the Nairobi Securities Exchange by June, a move expected to enhance capital access and market visibility.
The bank said it remains optimistic about sustaining growth momentum in 2026, supported by innovation, customer expansion and prudent risk management.
