Family Bank is in advanced talks with regulators to fine tune its plans to list on the Nairobi Securities Exchange (NSE) in 2026.
Last
week, the bank’s top executive met Capital Markets Authority
(CMA) CEO Wyckliffe Shamiah ahead of an investor briefing on Monday, with
insiders telling the Star in confidence that “It is almost a done deal.”
On Tuesday, while addressing investors in
Nairobi, Family Bank CEO Nancy Njau stated that listing on the Nairobi bourse remains a priority, with 2026 being a definite year for the long-awaited plan.
The lender posted a 38.7 per cent
increase in net earnings for the first six months of the year to Sh2.2 billion,
driven by sustained revenue growth, prudent cost management and a robust
balance sheet.
This
was an increase compared to Sh1.6 billion posted in the corresponding half last
year, underscoring the bank’s operational resilience in a dynamic economic environment.
“Our
strong half-year results reflect strategic clarity, operational excellence, and
the trust our customers place in us. This momentum is further supported by our
2025–2029 strategy, which focuses on scaling SME lending, driving innovation
and digital transformation,’’ Njau said.
The bank’s balance sheet strengthened
significantly, with total assets growing by 21.8 per cent to Sh192.8 billion.
This was driven by a double-digit
expansion of 10.4 per cent in the loan book to Sh100.9 billion, supported by
recent funding partnerships with British International Investment and the
European Investment Bank, which have expanded access to financing for SMEs.
Net interest income surged by 39.9 per
cent to Sh6.9 billion, buoyed by a 48.7 per cent growth in interest income from
Government securities and a 14.8 per cent per cent increase in interest income
from loans and advances, which closed at Sh7.7 billion.
Customer deposits rose by 25.7 per cent to Sh149.7 billion, boosted by the bank’s branch optimisation strategy, including continuous expansion. During the period, it opened its 96th branch in Kilifi.
Operating expenses saw a notable rise of
36.3per cent, climbing from Sh4.9 billion to Sh6.7 billion.
This increase was primarily driven by
strategic investments in marketing initiatives to strengthen brand visibility,
the expansion of the branch network, and the modernisation of digital
infrastructure.
The lender recorded a 15.4 per cent
reduction in net non-performing loans, driven by improved asset quality and
sustained recovery efforts.
It recorded an NPL ratio of 13 per cent,
the lowest in the market and way below the industry average of 17 per cent.
“To further reinforce this progress and
cushion against potential sector-wide risks, we increased our loan loss provisions
by 68.4 per cent to Sh663.5 million as a prudent risk management and proactive
approach to safeguarding assets,” said Family Bank chief financial officer,
Paul Ngaragari.
Core capital stood at Sh16.5 billion, up
from Sh14.5 billion, while the bank’s liquidity ratio strengthened to 53.1per
cent, well above the statutory requirement of 20 per cent, reflecting strong
capital adequacy.
At least 90 per cent of the bank’s transactions are conducted through digital channels, offering customers unmatched convenience.
