Nairobi: Family Bank has reported robust financial results for the year ending December 31, 2025, with a significant 55% increase in net profit after tax, reaching Sh5.37 billion. This impressive growth was driven by an increase in customer deposits, an expanded loan book, and heightened investment in digital banking platforms.
According to Kenya News Agency, the bank's Chairman Lazarus Muema highlighted during the investor briefing in Nairobi that this performance reflects the bank's strategic efforts to bolster its capital base and invest in technology to fuel business growth. Muema attributed the bank's current strong position to strategic capital-raising initiatives undertaken in recent years, which have supported expansion and enhanced shareholder value.
Muema detailed that in 2021, the bank successfully raised Sh4.4 billion through a corporate bond, surpassing its Sh3 billion target by 47% amidst the challenges posed by the COVID-19 pandemic. This financial boost enabled the bank to support micro, small, and medium enterprises (MSMEs) while investing in essential technology infrastructure.
In 2023, Family Bank launched another capital-raising initiative, following shareholder approval of a two-tier program involving a rights issue and a private placement, raising Sh252 million and Sh8 billion respectively, with the latter exceeding its Sh6 billion target by 31%.
The chairman emphasized that the strengthened balance sheet has positioned Family Bank for long-term growth and improved market competitiveness. Reflecting the improved performance, the board proposed a dividend of Sh1.20 per share, underscoring the bank's dedication to delivering sustainable returns to shareholders. Additionally, Muema indicated plans to list the bank's shares on the Nairobi Securities Exchange by the end of June.
Family Bank Group CEO Nancy Njau credited the bank's growth to strong customer relationships, disciplined strategy execution, and the dedication of its employees. Njau noted the bank's ongoing expansion of financial services access through physical and digital channels, aligning with its broader financial inclusion goals. Currently, the bank operates 96 branches across 32 counties, supported by approximately 5,000 banking agents and over 103,000 merchants nationwide.
CEO Njau also acknowledged the challenging 2025 operating environment influenced by global geopolitical tensions and regional economic developments. Nonetheless, she pointed out favorable domestic developments, including a reduction in the Central Bank Rate from 11.25% to 8.75%, which led to decreased lending rates and stimulated private sector borrowing.
Presenting the financial results, CFO Paul Ngarangari reported strong growth across key financial indicators, with total assets rising by 24% to Sh208 billion and customer deposits increasing by 20% to Sh151.8 billion. The net loan book expanded by 14% to Sh105.8 billion, primarily driven by lending to businesses and retail customers. Profit before tax surged by 62% to Sh6.8 billion, with the group recording a 55% increase in profit after tax compared to the previous year.
CFO Ngarangari attributed the improved performance to higher operating income and significant growth in net interest income, with total operating income increasing by 37% to Sh20 billion. He also noted the bank's enhanced operational efficiency, as evidenced by a decline in the cost-to-income ratio from 74% to 68%.
Family Bank maintained strong capital adequacy levels, with total capital to risk-weighted assets at 19.6%, significantly above the 14% regulatory requirement set by the Central Bank of Kenya. Beyond financial performance, the bank continued its commitment to environmental, social, and governance initiatives, supporting over 1,500 vulnerable students and investing over Sh540 million in scholarships. Environmental efforts included tree-planting programs and adopting renewable energy solutions in some branches.
Looking forward, Family Bank expressed optimism that the first-year success of its 2025-2029 strategic plan would lay a solid foundation for sustained growth. Ngarangari emphasized the bank's confidence in continued digital transformation, customer-centric services, and prudent risk management to drive future profitability and strengthen investor confidence.