Increase in Half-Year Profits of Family Bank Ascends by 39%, Reaching Sh2.3 Billion
Family Bank's Strong Performance in H1 2025
Family Bank, a leading financial institution in Kenya, has reported impressive financial results for the first half of 2025. The bank's strategic approach to lending and investment has resulted in significant growth across various key areas.
According to the bank's latest financial report, net interest income for the six months to June 2025 stood at Sh7.0 billion, marking a substantial 39.9% increase from the same period the previous year, which stood at Sh10.7 billion. This growth was despite the lowering of the Central Bank Rate (CBR), which has impacted the interest income that banks like Family Bank receive from their lending activities.
Total interest income for the six months ended June 30, 2025, was Sh11.4 billion, representing a 24% growth when compared to the six months to December 31, 2024. This growth was driven by a 14.8% increase in interest income from loans and advances, as well as a 48.7% growth in interest income from government securities.
The bank's asset base expanded to Sh192.7 billion, reflecting a growth of 21.8%, with net loans and advances increasing by 10.4% to Sh100.9 billion. This growth in loans and advances has been strategic, with the bank focusing on disbursing as much to its customers as possible to drive volumes.
The bank's profitability also saw a significant boost. Profit before tax went up 26% from Sh2.3 billion to Sh2.9 billion, while profit after tax increased by 38.7% to Sh2.3 billion for the six months ended June 30, 2025.
Family Bank's focus on tax efficiency is evident in its operations. The bank employs highly experienced tax experts who ensure that every investment decision is reviewed to ensure compliance with tax laws. The bank also reviews all contracts with vendors to check for tax efficiency and focuses on issues around double taxation in its relationships with vendors.
In light of the changing CBR, the bank has had to reprice its credit facilities to maintain profitability. Despite these challenges, Family Bank continues to thrive, demonstrating its resilience and commitment to delivering value to its stakeholders.
Paul Ngaragari, the current Chief Financial Officer at Family Bank, was employed before 2023, although the exact hiring date is not specified in the available sources. His leadership has been instrumental in driving the bank's growth and success.
Under Ngaragari's leadership, Family Bank can claim tax allowance on any losses arising from business-related activities, ensuring that the bank's financial performance remains robust even in challenging economic times. The bank's commitment to tax compliance and efficiency sets it apart as a responsible and forward-thinking financial institution.
