Family Bank has doubled its dividend payout to shareholders to Sh2.2 billion following a 55.4 percent growth in full-year net profit ahead of the planned listing of its shares on the Nairobi Securities Exchange (NSE) in May.
The bank reported a net profit of Sh5.37 billion for the year ended December 2025, up from Sh3.46 billion in the previous year.
The improved performance was on the back of a 44.1 percent jump in interest earned from Treasury bills and bonds to Sh7.9 billion, up from Sh5.4 billion. The jump followed a 45.1 percent increase in investment in government securities to Sh74 billion.
Management proposed distributing 41.4 percent of the net profit to shareholders by announcing a dividend of Sh1.20 per share, up from Sh0.85 per share paid out the previous year.
The increase in dividend payout per share rose by 41.1 percent but its total payout doubled from Sh1.1 billion due to the increase in the bank’s issued shares during a private placement conducted last August.
The mid-sized lender said it would be listing on the NSE in May, a move that will bring to an end its decade-long flirtation with going public.
“We expect to list in the month of May, subject to regulatory approvals,” said the bank’s chairman, Lazarus Muema.
“We have contracted Standard Investment Bank as our transaction advisers and Mboya Wangong’u and Waiyaki advocates as our legal advisors.”
Family Bank intends to list at the NSE through introduction, meaning it will not be raising new capital in the listing process.
Currently, the bank’s shares are traded in the over-the-counter (OTC) market, where they are trading at an average of Sh21 per share. Family Bank raised Sh8 billion through the private placement, being an oversubscription over the targeted Sh6.09 billion.
The capital injection helped the bank to rely on its own funds, cutting down borrowing from other banks to Sh561 million from Sh7.1 billion a year earlier.
Family Bank grew its loan book by 14 percent to Sh105.8 billion, resulting in a 10.5 percent increase in interest earned from loans to Sh16.1 billion.
“If you look at the money we mopped up from our customer deposits, around Sh25 billion, and the other money we got from shareholders, around 8 billion, most of that money was purely deployed into investment in government securities. The money we largely deployed into our customer loans and advances was largely supported by development finance institutions (DFI) as well as the retained earnings,” said Family Bank Chief Finance Officer Paul Ngaragari.
Family Bank’s customer deposits rose by 20 percent to Sh151.8 billion, a growth attributed to increased uptake of digital products by small businesses.
The use of bank accounts as a termination point of mobile money payment transactions has seen the bank’s deposits from small and medium-sized businesses grow to 53 percent.
The bank received Sh6 billion from DFIs for lending to small and medium-sized businesses.
The lender reported a 21.5 percent growth in non-performing loans, which rose to 17.5 billion, being 14.9 percent of its loan book.
Management attributed the bulk of its bad book to three customers, two of whom it said were contractors in the construction sector owed huge amounts by the government.
