Nairobi: 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.
According to Kenya News Agency, the financial results were released during the bank’s first investor briefing following its historic listing on the Nairobi Securities Exchange (NSE). The bank also reported total assets rising 24 percent to Sh238.9 billion from Sh192 billion in June 2025. The listing on June 23, 2026, has increased the bank’s 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. This led to an increase in market capitalization from Sh29.9 billion at listing to Sh54 billion by the end of July.
Family Bank Board Chairman Lazarus Muema stated that the NSE listing marked a new chapter for the institution, bringing greater responsibility, accountability, and focus on sustainable growth. He emphasized that the bank would focus on growing the business and strengthening its resilience rather than concentrating solely on share price performance.
Presenting the financial results, Chief Financial Officer Paul Ngaragari attributed the strong performance to disciplined execution of the bank’s strategy and expansion of interest-earning assets. He noted that 89 percent of the bank’s total assets were invested in interest-earning assets, reflecting the lender’s strategy of maximizing the productivity of its balance sheet.
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 highlighted the bank’s commitment to supporting businesses through accessible financing while maintaining prudent risk management. On asset quality, the Non-Performing Loans (NPL) ratio stood at 14.9 percent, below the banking industry average of 15.3 percent. The bank has a total coverage ratio of 124 percent for its non-performing facilities, combining cash provisions and collateral.
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.’ Digital transformation remained central to the bank’s growth, with digital channels accounting for 92 percent of all customer transactions.
Njau also announced that Family Bank is expanding its physical branch network towards a target of at least 100 outlets from the current 97 and is evaluating opportunities for regional expansion within East Africa as part of its strategic plan. Legal Officer and Company Secretary Eric Murai clarified regulations regarding the use of listed shares as security for borrowing.
The bank also highlighted environmental, social, and governance initiatives implemented through the Family Group Foundation, including scholarships, ecosystem restoration, and solar power installations. The NSE listing has strengthened the bank’s accountability to shareholders and other stakeholders while creating a platform for future growth.
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. Management expects the positive operating environment to support continued growth during the second half of 2026.
