NAIROBI — Family Bank posted a 52.6 percent rise in first-quarter net profit to Sh1.6 billion, supported by strong growth in interest income, customer deposits, and lending activity as the lender ramps up preparations for a planned Nairobi Securities Exchange listing.
The bank's profit after tax for the three months ended March 2026 rose from Sh1.0 billion recorded during a similar period last year, according to its unaudited financial results.
The performance was driven by an increase in net interest income, which climbed 45.4 percent to Sh4.7 billion from Sh3.2 billion, on stronger returns from loans and investment in government securities.
Total operating income grew by 22.1 percent to Sh6.0 billion, while the lender's loan book expanded 12.6 percent to Sh108.3 billion as the bank increased credit to the private sector.
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Customer deposits rose 27.1 percent to Sh168.1 billion, helping push total assets up 32.3 percent to Sh230.2 billion.
"Our first quarter results reflect the resilience of our business model and our commitment to delivering sustainable value to shareholders and customers alike. The continued growth in profitability, assets, and capital strength demonstrates the effectiveness of our long-term strategy as we position the Bank for sustained growth and stability," said Nancy Njau, Chief Executive Officer, Family Bank.
"We remain focused on deepening financial inclusion, accelerating digital transformation, and creating long-term value for all our stakeholders."
The lender said the increase in operating costs, which rose 7.6 percent to Sh3.7 billion, was linked to continued investment in technology and branch optimization.
Family Bank also recorded a significant rise in shareholders' funds, which surged 42.2 percent to Sh34.7 billion following a recently concluded private placement that the bank said was subscribed by 131 percent.
The capital raise comes as the lender finalizes preparations for an upcoming listing by introduction on the Nairobi Securities Exchange.
Despite the strong earnings growth, the bank continued to face pressure from non-performing loans, which remained elevated at Sh17.2 billion during the quarter, highlighting the broader strain facing some borrowers in the economy.
However, the lender maintained capital ratios above regulatory thresholds, with management saying the bank remained focused on strengthening financial inclusion, expanding digital services, and supporting long-term growth.
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