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Family Bank recorded a sharp increase in first-quarter profit, posting Sh1.6 billion in net earnings driven by strong growth in lending, customer deposits, and interest income as it moves closer to its planned listing on the Nairobi Securities Exchange.
The lender’s profit after tax for the quarter ending March 2026 rose by 52.6 percent from Sh1.0 billion reported during the same period last year, according to unaudited financial results released by the bank.
The improved performance was largely attributed to a 45.4 percent jump in net interest income, which increased to Sh4.7 billion from Sh3.2 billion, supported by higher earnings from loans and investments in government securities.
Total operating income grew by 22.1 percent to Sh6.0 billion, while the bank’s loan portfolio expanded by 12.6 percent to Sh108.3 billion following increased lending to businesses and individuals.
Customer deposits also registered strong growth, rising 27.1 percent to Sh168.1 billion and helping lift total assets by 32.3 percent to Sh230.2 billion.
Family Bank Chief Executive Officer Nancy Njau said the results reflected the lender’s strong business model and long-term growth strategy.
“Our first-quarter performance demonstrates the resilience of the bank and our commitment to creating sustainable value for both shareholders and customers. The growth in profitability, assets, and capital position confirms the success of our long-term strategy as we prepare for future expansion and stability,” she said.
Njau added that the bank remained focused on promoting financial inclusion, enhancing digital banking services, and delivering long-term value to stakeholders.
Operating expenses rose by 7.6 percent to Sh3.7 billion, which the lender attributed to continued investment in technology and branch network improvements.
Shareholders’ funds surged by 42.2 percent to Sh34.7 billion after the bank completed a private placement that attracted subscriptions worth 131 percent of the targeted amount.
The capital raise comes as Family Bank finalizes plans for a listing by introduction at the Nairobi Securities Exchange.
Despite the strong financial performance, the lender continued to face pressure from non-performing loans, which stood at Sh17.2 billion during the quarter, reflecting the economic difficulties affecting some borrowers.
However, the bank maintained capital levels above regulatory requirements and said it would continue strengthening digital services, expanding financial inclusion, and supporting sustainable long-term growth.
