By Robert Kibet
Family Bank Group has demonstrated resilience and strategic focus in Eastern Africa’s competitive banking sector, reporting an eight percent growth in profit before tax for the first nine months of 2024. This growth brought the bank’s profit to KES 3.26 billion (approximately USD 21.9 million), up from KES 3.02 billion (USD 20.3 million) during the same period in 2023.
The bank’s robust performance reflects its ability to capitalize on diverse revenue streams. Total interest income surged by nearly one-third to KES 14.6 billion (USD 98.3 million), buoyed by a 20 percent rise in income from loans and advances, which amounted to KES 10.6 billion (USD 71.3 million). The loan book expanded by slightly over 11 percent, reaching KES 94.2 billion (USD 634 million). Investments in government securities yielded higher returns, contributing to a substantial 65 percent increase in related interest income. Meanwhile, total assets grew by 16 percent to KES 163.2 billion (USD 1.1 billion) compared to KES 141 billion (USD 949 million) in September 2023.
Diversified Revenue Streams Fuel Growth
Non-funded income, an important driver of revenue diversification, rose by more than 13 percent to KES 3.3 billion (USD 22.2 million), with fees and commissions growing by 14.5 percent. Overall operating income increased by 11 percent, underscoring Family Bank’s capacity to sustain bottom-line growth even amid economic challenges.
Strategic Focus on Transformation and Efficiency
The bank’s CEO, Nancy Njau, attributed this growth to strategic investments in customer-centric services and operational efficiencies.
“Our focus this year has been to accelerate business growth and optimize value creation across all areas of operation. The growth in profit underscores our unwavering commitment to delivering on strategic priorities while placing our customers at the core of our efforts. By aligning our investments with evolving customer needs and driving operational efficiencies, we continue to position the bank for sustained growth as we offer superior financial products and services,” said Njau.
Significant investments in talent development, technology, and digital transformation led to a 12 percent rise in operating expenses, totaling KES 7.7 billion (USD 51.7 million). These initiatives are expected to deliver greater results in the medium term. Additionally, the bank reduced loan loss provisions by a remarkable 41 percent due to enhanced collection strategies and a healthy loan portfolio.
Eastern Africa’s Banking Sector: Trends and Opportunities
The banking sector across Eastern Africa is evolving rapidly, fueled by increasing financial inclusion, the rise of digital banking platforms, and a growing focus on small and medium-sized enterprise (SME) financing. In Kenya, SMEs contribute nearly 40 percent to the GDP, making them a critical driver of economic growth. Over 70 percent of Kenyans now use mobile money services, transforming traditional banking models into more inclusive, tech-driven platforms.
Family Bank has been a trailblazer in this transformation, pioneering paperless banking, introducing smart card technology, and launching mobile services like PesaPap. Its innovative approach reflects broader regional trends, where banks are leveraging technology to serve previously unbanked populations and meet diverse customer needs.
Recognition for Excellence
Family Bank’s achievements have earned it numerous accolades, cementing its reputation as a leading institution in the region. In 2024, the bank won the Excellence in Customer Responsiveness award at the Innovation & Excellence Awards in East Africa. It was also ranked the third-best overall bank in the Kenya Bankers Association Customer Satisfaction and Digital Banking Experience Survey.
Its commitment to impactful lending has been recognized with awards such as the 2022 Bank of the Year for high-impact agricultural lending by Aceli Africa and the Best SME Bank in Kenya at the Banker Africa East Africa Awards. These accolades reflect the bank’s alignment with development priorities, including SME support and agricultural financing.
Positioning for Sustained Growth
With a liquidity ratio of 43.9 percent and a total capital ratio of 16.5 percent—both well above regulatory requirements—Family Bank is well-positioned for continued growth. Its strategic investments and customer-focused approach enable it to navigate challenges and seize opportunities in Eastern Africa’s dynamic banking landscape.
Family Bank’s success story is emblematic of the potential within the region’s financial sector as institutions continue to innovate, expand financial inclusion, and drive economic development.
