Family Bank Group reported a 15.4% year-on-year increase in net profit for the first quarter ended 31 March 2025, reaching KSh 1.05 billion—the first time the bank has surpassed the KSh 1 billion profit mark in a single quarter.
Key Financial Performance Drivers
- Total interest income grew by 23%, from KSh 4.46 billion in Q1 2024 to KSh 5.48 billion.
- Net interest income surged by 34% to KSh 3.25 billion, driven by higher returns from government securities and an expanding loan book.
- Non-interest income increased by 44% to KSh 1.71 billion, supported by elevated fees and commissions on loans.
- However, forex trading income declined sharply by 71%, falling to KSh 93.6 million from KSh 327.5 million in the prior year.
Balance Sheet and Asset Quality
- Customer deposits rose 19.2% year-on-year to KSh 132.28 billion.
- Total assets expanded by 19.2% to KSh 174.04 billion, fueled by a 10.1% increase in net loans and advances to KSh 96.29 billion.
- Despite profit growth, asset quality showed pressure: gross non-performing loans (NPLs) increased to KSh 14.91 billion from KSh 13.93 billion, nudging the NPL ratio to 14.2%.
- Operating expenses rose 20% to KSh 3.67 billion, reflecting higher staff and premises costs, though the cost-to-income ratio remained stable due to strong revenue growth.
Profit Before Tax and Capital Position
- Profit Before Tax increased by 15.4% to KSh 1.5 billion, up from KSh 1.3 billion in Q1 2024.
- Core capital improved to KSh 15.9 billion with a solid core capital ratio of 13.22%, comfortably above regulatory minimums.
- The liquidity ratio remained robust at 46.9%, underscoring strong capacity to meet short-term obligations.
Key Q1 2025 Financial Highlights
| Metric | Q1 2024 | Q1 2025 | YoY Change |
|---|---|---|---|
| Profit After Tax | KSh 910 M | KSh 1.05 Bn | +15.4% |
| Total Interest Income | KSh 4.46 Bn | KSh 5.48 Bn | +23.0% |
| Net Interest Income | KSh 2.43 Bn | KSh 3.25 Bn | +33.7% |
| Non-Interest Income | KSh 1.19 Bn | KSh 1.71 Bn | +44.1% |
| Forex Trading Income | KSh 327.5Mn | KSh 93.6 M | –71.4% |
| Customer Deposits | KSh 110.98 Bn | KSh 132.28 Bn | +19.2% |
| Total Assets | KSh 145.97 Bn | KSh 174.04 Bn | +19.2% |
| Net Loans & Advances | KSh 87.45 Bn | KSh 96.29 Bn | +10.1% |
| Gross NPLs | KSh 13.93 Bn | KSh 14.91 Bn | +7.0% |
| Operating Expenses | KSh 3.06 Bn | KSh 3.67 Bn | +20.0% |
Strategic Plans and Outlook
Family Bank is advancing plans to list on the Nairobi Securities Exchange (NSE), preferably by introduction, contingent on securing capital from institutional investors on favourable terms.
If this does not materialise, the bank is prepared to issue new shares with full backing from key shareholders, including the Muya family.
Family Bank Chair Lazarus Muema noted:
“We are planning on listing on the Nairobi Securities Exchange, preferably by introduction, subject to securing capital from institutional investors on favourable terms.”
CEO Nancy Njau, speaking at the investor briefing, attributed the strong results to strategic clarity and customer focus:
“This is the first quarter of our new strategic plan, and these results reflect our commitment to innovation, digital transformation, and customer-centricity. We are positioning Family Bank as the preferred bank for Biashara, focusing on retail and SME sectors to meet evolving customer needs.”