Family Bank Group has reported a 15.4% year-on-year increase in net profit for the first quarter ended 31 March 2025, rising to KSh 1.05 billion—marking the first time the lender has crossed the KSh 1 billion profit mark in a single quarter.
- •The solid performance was driven by a 23% growth in total interest income, which rose to KSh 5.48 billion from KSh 4.46 billion in Q1 2024.
- •Net interest income surged by 34% to KSh 3.25 billion, largely reflecting increased returns from government securities and an expanding loan book.
- •According to the board chairman, the lender is planning on listing on the Nairobi Securities Exchange, preferably by introduction, subject to securing capital from institutional investors on favorable terms.
Family Bank’s non-interest income rose 44% to KSh 1.71 billion, supported by higher fees and commissions on loans. However, the bank saw a sharp drop in forex trading income, which fell 71% to KSh 93.6 million from KSh 327.5 million in the same period last year.
The Q1 results come as Family Bank advances strategic plans to list by 2026. The board, through the chairman, has indicated that the preferred route is a listing by introduction.
Should funding from institutional investors not materialize, the bank is prepared to issue new shares with the full backing of its key shareholders, including the Muya family.
Key Q1 2025 Financial Highlights
| Metric | Q1 2024 | Q1 2025 | YoY Change |
|---|---|---|---|
| Profit After Tax | KSh 910Mn | KSh 1.05Bn | +15.4% |
| Total Interest Income | KSh 4.46Bn | KSh 5.48Bn | +23.0% |
| Net Interest Income | KSh 2.43Bn | KSh 3.25Bn | +33.7% |
| Non-Interest Income | KSh 1.19Bn | KSh 1.71Bn | +44.1% |
| Forex Trading Income | KSh 327.5Mn | KSh 93.6Mn | –71.4% |
| Customer Deposits | KSh 110.98Bn | KSh 132.28Bn | +19.2% |
| Total Assets | KSh 145.97Bn | KSh 174.04Bn | +19.2% |
| Net Loans & Advances | KSh 87.45Bn | KSh 96.29Bn | +10.1% |
| Gross NPLs | KSh 13.93Bn | KSh 14.91Bn | +7.0% |
| Operating Expenses | KSh 3.06Bn | KSh 3.67Bn | +20.0% |
On the balance sheet side, customer deposits increased by 19.2% year-on-year to KSh 132.28 billion, up from KSh 110.98 billion in Q1 2024. Total assets expanded to KSh 174.04 billion from KSh 145.97 billion, supported by growth in both net loans and investment securities. Net loans and advances rose 10.1% to KSh 96.29 billion.
Despite the profit growth, asset quality remained under pressure. Gross non-performing loans (NPLs) increased to KSh 14.91 billion from KSh 13.93 billion a year earlier. The bank’s NPL ratio ticked up slightly to 14.2%, though coverage levels remained adequate. Operating expenses rose 20% to KSh 3.67 billion, reflecting higher staff and premises costs, though the cost-to-income ratio stayed stable due to robust revenue growth.
Five-Year Q1 Performance Trends (2021–2025)
| Metric | Q1 2021 | Q1 2022 | Q1 2023 | Q1 2024 | Q1 2025 |
|---|---|---|---|---|---|
| Profit After Tax | 510Mn | 733Mn | 732Mn | 910Mn | 1.05Bn |
| Net Loans & Advances | 61.44Bn | 72.61Bn | 83.76Bn | 87.45Bn | 96.29Bn |
| Customer Deposits | 72.59Bn | 89.44Bn | 92.77Bn | 110.98Bn | 132.28Bn |
| Total Assets | 94.84Bn | 122.26Bn | 131.89Bn | 145.97Bn | 174.04Bn |
| Total Interest Income | 2.41Bn | 2.99Bn | 3.41Bn | 4.46Bn | 5.48Bn |
| Net Interest Income | 1.80Bn | 2.02Bn | 2.04Bn | 2.43Bn | 3.25Bn |
| Non-Interest Income | 710Mn | 650Mn | 910Mn | 1.19Bn | 1.71Bn |
| Forex Trading Income | 83Mn | 328Mn | 278Mn | 327.5Mn | 93.6Mn |
| Operating Expenses | 1.79Bn | 1.70Bn | 1.99Bn | 3.06Bn | 3.67Bn |
| Gross Non-Performing Loans | 10.41Bn | 11.48Bn | 13.27Bn | 13.93Bn | 14.91Bn |
Over a five-year period, Family Bank has posted consistent growth. Profit after tax has more than doubled from KSh 510 million in Q1 2021, and total assets have nearly doubled from KSh 94.8 billion to KSh 174 billion.
The deposit base has also grown strongly, rising from KSh 72.6 billion to KSh 132.3 billion over the same period.
