Family Bank Limited has recorded a 59.3 percent year-on-year increase in Profit Before Tax (PBT) to Sh4.6 billion for the first half of 2026, up from Sh2.9 billion in a similar period last year, driven by growth in private sector lending and a stronger balance sheet.
The financial results, released during the bank’s first investor briefing following its historic listing on the Nairobi Securities Exchange (NSE), also showed total assets rising 24 percent to Sh238.9 billion from Sh192 billion in June 2025.
The lender’s June 23, 2026, listing has further increased its visibility and market valuation, with its share price rising from the reference price of Sh18 to a high of Sh50 on debut before closing at Sh32.95. Its market capitalisation subsequently rose from Sh29.9 billion at listing to Sh54 billion by the end of July.
Family Bank Board Chairman Lazarus Muema said the NSE listing marked a new chapter for the institution, with increased visibility bringing greater responsibility, accountability and focus on sustainable growth.
“The listing was a major milestone for Family Bank. It brought greater visibility, and visibility also comes with responsibility and accountability,” said Muema.
He said the bank remained focused on growing the business and strengthening its resilience rather than concentrating solely on share price performance.
Presenting the financial results, Chief Financial Officer (CFO) Paul Ngaragari attributed the strong performance to disciplined execution of the bank’s strategy and expansion of interest-earning assets.
He said 89 percent of the bank’s total assets were invested in interest-earning assets, reflecting the lender’s strategy of maximising the productivity of its balance sheet.
“Over the years, Family Bank has grown, and we’ve entered a rapid growth phase as an institution. Out of the total assets, 89 percent is invested in interest-earning assets. Our mantra is we don’t hold any idle cash within our banking system,” said Ngaragari.
Customer deposits, the bank’s main source of funding, increased 20 percent to Sh180.2 billion from Sh149.7 billion in June 2025.
Shareholders’ equity increased to Sh33.2 billion, generating a Return on Average Equity (ROAE) of 19.1 percent, while Earnings Per Share (EPS) increased to Sh2.23 from Sh1.75.
Total interest income rose 26 percent to Sh14.3 billion, supported by increased private sector credit, while net interest income reached Sh9.7 billion on a Net Interest Margin (NIM) of 9.2 percent.
Ngaragari said the bank maintained tight cost controls despite inflationary pressures, with the operational cost-to-income ratio, excluding loan loss provisions, standing at 53 percent.
Total operating expenses increased 11 percent, largely due to higher costs associated with vendor contracts and inflation.
The bank continued to strengthen its position in the micro, small, and medium enterprises (MSMEs) sector, with 70 percent of total private sector credit disbursements channelled to retail and MSME customers.
Ngaragari said the lender was committed to supporting businesses through accessible financing while maintaining prudent risk management.
On asset quality, the CFO said the Non-Performing Loans (NPL) ratio stood at 14.9 percent, below the banking industry average of 15.3 percent.
He said more than 70 percent of the bank’s non-performing facilities were “vintage” loans originated before the COVID-19 pandemic.
“Over 70 percent of our NPL portfolio is vintage. As an institution, we’ve deliberately decided to take cover of that asset. Today, 59 percent of our NPL is covered by cash provisions, and when combined with collateral, we have a total coverage ratio of 124 percent. We are fully in control,” Ngaragari said.
Managing Director and Chief Executive Officer Nancy Njau said the performance reflected progress in implementing the bank’s 2025–2029 strategic plan, which seeks to position Family Bank as the “Preferred Bank for Biashara.”
“Behind every number, there is a customer. The results we are releasing today are a clear testament to our strategic clarity and discipline of execution. Banking is not where you go; it is actually what you do from wherever you are,” said Njau.
She said digital transformation remained central to the bank’s growth, with digital channels accounting for 92 percent of all customer transactions, leaving eight percent to traditional physical branches.
Njau said the bank’s expanding digital footprint was supported by its PesaPAP mobile application, merchant payment collection points, and a nationwide network of banking agents.
At the same time, Family Bank is expanding its physical branch network towards a target of at least 100 outlets from the current 97.
Njau said the bank was also evaluating opportunities for regional expansion within East Africa as part of its strategic plan.
“We remain opportunistic to regional expansion as anchored in our strategic plan. We’ve engaged in assessing markets that are ready, and very soon, you will be seeing Family Bank in the region,” she said.
Legal Officer and Company Secretary Eric Murai clarified that while listed shares can generally be used as security for borrowing, Family Bank is prohibited by regulation from accepting its own shares as collateral.
He said customers could, however, use shares from other listed companies as security for credit facilities.
The bank also highlighted environmental, social, and governance initiatives implemented through the Family Group Foundation.
These include scholarships for 307 Grade 10 learners, a 240-acre ecosystem restoration project at Ngong Hills and installation of solar power systems at 10 branches and the bank’s corporate headquarters.
The initiatives are part of the bank’s broader commitment to supporting education, environmental conservation, and sustainable operations.
Muema said the NSE listing had strengthened the bank’s accountability to shareholders and other stakeholders while creating a platform for future growth.
The listing by introduction at a reference price of Sh18 per share attracted strong market demand, with the stock gaining 83 percent over the listing price to close at Sh32.95 on its first trading day.
The bank said the performance was achieved against a relatively supportive macroeconomic environment characterised by easing monetary policy, stable foreign exchange rates, and improving private sector credit conditions.
Management expects the positive operating environment to support continued growth during the second half of 2026.
The lender also highlighted its workforce composition, with Gen Z professionals accounting for 60 percent of employees and gender representation maintaining a 50:50 ratio across operational levels.
Family Bank said its focus going forward would remain on sustainable growth, digital transformation, private sector lending, MSME support, prudent risk management, and customer experience.
By Ian Maina and Emmanuel Mwendwa
