Higher interest income pushed up Family Bank Group’s net profit during the first three months of this year by 15.4% to Kshs 1.05 billion.
The lender saw its total interest income rising 23.07% to Ksh 5.48 billion. This was mainly driven by interest income on loans and advances that increased 14.7% to Ksh 3.8 billion and interest income on government securities that shot up 50.6% to Ksh 1.63 billion.
In addition, total non-interest income rose 32.07% to Ksh 1.7 billion mainly powered by other income. This is after foreign exchange trading income drastically reduced to Ksh 93.6 million, up from Ksh 327.5 million realised during the first three months of 2024. The lender booked Ksh 982.5 million in other income, up 182.4% from Ksh 347.9 made during a similar period in 2024.
Total non-interest income was mainly supported by increase in number of customers’ transactions, improved digital offering and increased products uptake.
On the other hand, operating expenses increased 41.5%, on account of a 59.6% rise in loan loss provisions. This is after the gross Non-performing loans and advances rose to Ksh 14.9 billion, up from Ksh 13.9 billion a year earlier. This prompted Family Bank to increase the loan loss provision to Ksh 333.8 million, up from Ksh 209.2 million in March 2024.
In addition, staff costs increased 10.9%, largely attributed to branch optimization initiatives and continued investments in employee training and capacity building.
Family Bank CEO Nancy Njau credited the strong first-quarter results to the Bank’s commitment to building on the achievements of the previous strategy which ended in the year 2024 while at the same time responding to the evolving needs of our customers.
“This is the first quarter of our new strategic plan, and these results are a reflection of our strategic clarity and the strong relationships we continue to build with our customers as we focus on sustaining long-term shareholder value.
“Our new 2025–2029 strategy prioritizes innovation, digital transformation, customer-centricity, data-driven decision-making, and sustainable growth. We are positioning Family Bank as the Preferred Bank for Biashara, an approach anchored in a refined segmentation strategy, with a strong focus on the retail and SME sectors, enabling us to meet our customers evolving needs,” Njau said.
Total assets rose by 19.2% to Ksh 174.0 billion, driven by a 10.1% growth in the loan book which stood at Ksh 96.2 billion and a 3.3% increase in investment in Government securities.
Customer deposits grew by 19.8% to Ksh 132.3 billion, supported by the Bank’s branch optimization strategy alongside continued investments in digitization and customer experience enhancements aimed at expanding financial access.