Family Bank profit jumps 38pc to Sh3.4b on higher interest income

Kitutu Chache South MP. Hon. Anthony Kibagendi, Family Bank CEO Nancy Njau & Chief Retail Officer Phyllis Kimani during the opening of the Kisii branch which was relocated to Zonic Hotel along Hospital Rd to ease customer access and convenience. Looking on is Kisii Central SDA church Pastor George Morara, AIC Church Bishop Phillip Mariita & former MP Hon. David Kombo. [Sammy Omingo, Standard]

Family Bank Group’s net profit surged by 38 per cent to Sh3.4 billion in the year ended December 2024 from Sh2.5 billion a year earlier.

The performance, the lender said in a statement Friday, was driven by robust and sustainable revenue growth, a strong capital base and liquidity position, and cost and operational efficiency.

The Group’s board has proposed a 52 per cent increase in dividends from Sh0.56 per share to Sh0.85 per cent per share.

Total revenue grew by 12.5 per cent 15.0 billion, supported by a 28.8 per cent surge in total interest
income toSh20.3 billion, fueled by a 20.5 per cent rise in earnings from loans and advances.

Product diversification

It was also boosted by a 62.1 per cent increase in income from government securities. Net interest income during the review period grew by 13.9 per cent to Sh10.7 billion, while non-interest income rose by 8.9 per cent to Sh4.3 billion, supported by strong growth in other fees and commissions.

“We focused on diversifying our tailored product offerings to meet the evolving needs of our customers while at the same time reinforcing our community presence,” said Family Bank Chief Executive Nancy Njau.

“Despite economic challenges, we remained agile by broadening our revenue streams, supporting key economic sectors such as SMEs, agribusiness, and manufacturing, enhancing operational efficiencies, and deepening customer relationships.”

The Group’s total assets grew by 18.3 per cent to Sh168.5 billion, driven by a 6.9 per cent expansion in the net loan book to Sh92.9 billion.

“Strong customer confidence was evident in the balance sheet, with customer deposits rising by 23.3 per cent to Sh126.4 billion by year-end. The bank, however, maintained cost discipline, limiting the growth of total operating expenses to 9.3 per cent,” said Ms Njau.

Prodent management

Over the year, loan loss provisions reduced by 48.3 per cent to Sh717.2 million, reflecting what the lender said was improved asset quality and prudent risk management.

“Looking ahead, we have laid a very strong foundation, and our focus remains on scaling and deepening customer experience in all the sectors that we operate in. Our 2025-2029 strategy is anchored on innovation, digital transformation, customer-centricity, data-driven decision-making, and sustainable growth. With a strong capital base and solid market positioning, we are well-equipped to seize new opportunities and drive long-term value creation,”  said Ms Njau.

The bank, she added, remains well capitalised, with shareholders’ funds increasing by 32.7 per cent to Sh22.3 billion.

The bank’s core capital ratio and liquidity ratio also remained well above the regulatory threshold, with the capital ratio standing at 16.2 per cent and the liquidity ratio at 43.9 per cent.