Family Bank has reported strong financial results for the year ended December 31, 2025, posting a 55 per cent increase in net profit after tax to Sh5.37 billion, driven by growth in customer deposits, expansion of the loan book and increased investment in digital banking platforms.
Speaking during the bank’s investor briefing in Nairobi on Monday, the lender’s Chairman Lazarus Muema said the performance reflects the bank’s deliberate efforts to strengthen its capital base and invest in technology to support business growth.
Muema noted that the bank’s current position is anchored on strategic capital raising initiatives undertaken in recent years to support expansion and enhance shareholder value.
“In 2021, the bank embarked on a pivotal capital raise through a corporate bond which raised Sh4.4 billion against a target of Sh3 billion representing a 47 per cent oversubscription,” he said.
The chairman explained that the funds strengthened the bank’s capital base during the COVID-19 period, enabling it to continue supporting micro, small and medium enterprises (MSMEs) while investing in key technology infrastructure.
He added that the bank later launched another capital-raising initiative in 2023 after shareholders approved a two-tier programme comprising a rights issue followed by a private placement.
“While the rights issue raised Sh252 million under challenging market conditions, the subsequent private placement exceeded expectations and raised Sh8 billion against a target of Sh6 billion, representing a 31 per cent oversubscription,” Muema stated.
According to the chairman, the strengthened balance sheet has positioned the lender for long-term growth and improved market competitiveness.
He further revealed that the board had proposed a dividend of Sh1.20 per share following the improved performance, underscoring the bank’s commitment to delivering sustainable returns to shareholders.
Muema also indicated that the bank remains on track with plans to list its shares on the Nairobi Securities Exchange before the end of June this year.
“We remain confident that our strategy, capital strength and innovation will enable us to continue delivering long-term value to our investors,” he said.
Family Bank Group Chief Executive Officer Nancy Njau attributed the growth to strong customer relationships, disciplined execution of the bank’s strategy and the commitment of employees across the organisation.
Njau said the lender has continued to expand access to financial services through both physical and digital channels as part of its broader financial inclusion agenda.
The bank currently operates 96 branches across 32 counties and supports its services through about 5,000 banking agents and more than 103,000 merchants across the country.
“We are very proud of this performance which has been made possible by our customers and a dedicated team committed to delivering value to our shareholders and investors,” Njau said.
She noted that the bank employs 1,839 staff members and continues to invest in digital infrastructure to ensure customers can access services conveniently through multiple platforms.
The CEO also highlighted that the operating environment in 2025 was influenced by global geopolitical tensions and regional economic developments that affected businesses and financial markets.
However, she pointed to positive domestic developments including the reduction of the Central Bank Rate from 11.25 per cent to 8.75 per cent, which contributed to a decline in lending rates.
“As a bank, we passed the benefits of the reduced Central Bank Rate to our customers, helping stimulate private sector borrowing and economic activity,” Njau said.
Presenting the financial results, Chief Financial Officer Paul Ngarangari said the bank recorded strong growth across key financial indicators during the year.
Total assets grew by 24 per cent to Sh208 billion, while customer deposits increased by 20 per cent to Sh151.8 billion, reflecting strong confidence from customers and investors.
The bank’s net loan book expanded by 14 per cent to Sh105.8 billion, largely driven by lending to businesses and retail customers.
Meanwhile, profit before tax rose by 62 per cent to Sh6.8 billion, while the group recorded a profit after tax of Sh5.37 billion, marking a 55 per cent growth compared to the previous year.
Ngarangari said the improved performance was supported by higher operating income and strong growth in net interest income.
“Total operating income grew from Sh14.6 billion to Sh20 billion, representing a 37 per cent increase, largely driven by a 46 per cent growth in net interest income,” he explained.
The CFO added that the bank also improved its operational efficiency, with the cost-to-income ratio declining from 74 per cent to 68 per cent despite significant investments in technology and infrastructure.
Family Bank also maintained strong capital adequacy levels during the year, with total capital to risk-weighted assets standing at 19.6 per cent, well above the 14 per cent regulatory requirement set by the Central Bank of Kenya.
Beyond financial performance, the bank continued to implement environmental, social and governance initiatives aimed at supporting sustainable development.
Through its corporate social investment programmes, the lender has supported over 1,500 vulnerable students, with more than 85 per cent progressing to higher education, while also investing over Sh540 million in scholarships over the years.
The bank has also undertaken environmental initiatives including tree-planting programmes and the adoption of renewable energy solutions in some of its branches.
Looking ahead, the lender expressed optimism that the strong results achieved in the first year of its 2025–2029 strategic plan would provide a solid foundation for sustained growth in the coming years.
Ngarangari said the bank is confident that continued investment in digital transformation, customer-centric services and prudent risk management will help drive future profitability and strengthen investor confidence.
“With the strong foundation we have built and the continued support of our shareholders and customers, we are well positioned to deliver even stronger results in the years ahead,” he said.
by Nicholas Ochieng
