Family Bank Kenya posted a 52.4 percent jump in net profit for the first quarter of 2026, helped by strong growth in income from loans despite a decline in non-funded income.
The mid-sized lender reported a net profit of Sh1.6 billion in the three months to March, up from Sh1.05 billion in a similar period last year.
It recorded an operating profit of Sh6.94 billion during the review period, representing a 26.6 percent increase from Sh5.48 billion a year earlier, as improved earnings from loans offset weaker performance in fees and commissions.
Most medium to large banks that have published their first quarter performance reported strong growth in earnings as they continue to enjoy healthy margins despite lower interest rates compared to last year.
Family Bank’s net interest income rose by 45.2 per cent to Sh4.72 billion from Sh3.25 billion in the first quarter of last year, underlining increased lending activity and improved returns from interest-earning assets.
However, non-funded income, which includes fees and commissions, dropped by 22.4 percent to Sh1.32 billion from Sh1.7 billion.
Operating costs rose marginally by 7.5 percent to Sh3.71 billion from Sh3.45 billion, largely due to higher staff costs and increased loan loss provisions.
Expenses on employees jumped by 49.9 percent to Sh1.64 billion during the review period compared to Sh1.094 billion in the same quarter last year.
The lender has in recent months seen corporate developments that continue to shape its financial position and ownership structure.
The bank carried out an Sh8 billion private placement in December last year that saw the combined ownership of founder Titus Muya and his family shrink by 9.3 percentage points after they opted out of the capital raising.
The bank, which intends to list on the Nairobi Securities Exchange before the end of June, sold 357.4 million new shares during the capital raising exercise, bringing on board 184 new shareholders and increasing its investor base to 6,345.
Listing of the company will expand the influence of banks on the NSE where they account for a big part of the market capitalisation and dividends.
