(Nairobi, Kenya) – Family Bank Limited posted a 59.3% rise in profit before tax to KES4.6 billion ($35.4 million / £27.9 million) for the first half of 2026, up from KES2.9 billion ($22.3 million / £17.6 million) in the same period last year, driven by stronger private sector lending and balance sheet growth.
The results were released during the bank’s first investor briefing since its listing on the Nairobi Securities Exchange on 23rd June. Total assets rose 24% to KES238.9 billion ($1.84 billion / £1.45 billion) from KES192 billion ($1.48 billion / £1.16 billion) in June 2025.
The share price climbed from a reference price of KES18 ($0.14 / £0.11) to a high of KES50 ($0.38 / £0.30) on the first trading day before closing at KES32.95 ($0.25 / £0.20). Market capitalisation rose from KES29.9 billion ($230 million / £181 million) at listing to KES54 billion ($415 million / £327 million) by the end of July.
Family Bank Board Chairman Lazarus Muema said the listing marked a new phase for the lender, bringing more visibility along with greater responsibility and accountability. He said the bank was focused on growing the business and strengthening resilience rather than watching share price movements alone.
Chief Financial Officer Paul Ngaragari said the strong performance came from disciplined execution of strategy and expansion of interest earning assets. He said 89% of total assets were invested in interest earning assets, reflecting a policy of keeping no idle cash within the banking system.
Customer deposits, the bank’s main funding source, increased 20% to KES180.2 billion ($1.39 billion / £1.09 billion) from KES149.7 billion ($1.15 billion / £907 million) in June 2025. Shareholders’ equity rose to KES33.2 billion ($255 million / £201 million), generating a return on average equity of 19.1%. Earnings per share increased to KES2.23 ($0.017 / £0.014) from KES1.75 ($0.013 / £0.011).
Total interest income rose 26% to KES14.3 billion ($110 million / £87 million), supported by higher private sector credit. Net interest income reached KES9.7 billion ($75 million / £59 million) on a net interest margin of 9.2%.
Ngaragari said the bank kept tight cost controls despite inflation, with the operational cost to income ratio, excluding loan loss provisions, at 53%. Total operating expenses increased 11%, mainly due to higher vendor contract costs and inflation.
The bank channelled 70% of total private sector credit to retail and micro, small and medium enterprise customers. Ngaragari said the lender remained committed to accessible financing while keeping prudent risk management.
The non performing loans ratio stood at 14.9%, below the banking industry average of 15.3%. Ngaragari said more than 70% of non performing facilities were older loans originated before the COVID-19 pandemic. He said 59% of the non performing portfolio was covered by cash provisions, with total coverage rising to 124% when collateral was included.
Managing Director and Chief Executive Officer Nancy Njau said the results showed progress in the bank’s 2025 to 2029 strategic plan, which aims to position Family Bank as the preferred bank for business. She said every number represented a customer and the results reflected strategic clarity and disciplined execution.
Njau said digital channels now account for 92% of all customer transactions, leaving 8% to physical branches. The digital footprint is supported by the PesaPAP mobile application, merchant payment points and a nationwide network of banking agents.
Family Bank is expanding its branch network towards a target of at least 100 outlets from the current 97. Njau said the bank was also assessing opportunities for regional expansion within East Africa.
Legal Officer and Company Secretary Eric Murai said listed shares can generally be used as security for borrowing, but regulation bars Family Bank from accepting its own shares as collateral. Customers can use shares from other listed companies as security for credit.
The bank highlighted environmental, social and governance initiatives run through the Family Group Foundation. These include scholarships for 307 Grade 10 learners, a 240 acre ecosystem restoration project at Ngong Hills and solar power systems at 10 branches and the head office.
Muema said the listing had strengthened accountability to shareholders and other stakeholders while creating a platform for future growth. The listing by introduction at KES18 ($0.14 / £0.11) per share attracted strong demand, with the stock gaining 83% over the reference price to close at KES32.95 ($0.25 / £0.20) on the first day.
Management said the performance was supported by a relatively stable macroeconomic environment with easing monetary policy, stable foreign exchange rates and improving private sector credit conditions. The lender expects the positive conditions to support continued growth in the second half of 2026.
The bank said Gen Z professionals make up 60% of employees, with gender representation at a 50:50 ratio across operational levels. Focus going forward will remain on sustainable growth, digital transformation, private sector lending, MSME support, risk management and customer experience.