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Home»Business»Banking»Family Bank Inches Closer to NSE Listing
Banking

Family Bank Inches Closer to NSE Listing

By Harry NjugunaOctober 1, 2025No Comments2 Mins Read
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Family Bank shareholders will meet virtually on October 27, 2025, for an Extraordinary General Meeting (EGM) to vote on a proposal to list the bank’s ordinary shares on the Nairobi Securities Exchange (NSE) by introduction.

Listing by introduction will allow existing shares to trade on the NSE without raising new capital. This will improve liquidity for shareholders currently trading over-the-counter and enhance transparency through NSE reporting rules.The board has also left the option of an Initial Public Offering (IPO) open if market conditions support it.Analysts note that a public offer would strengthen Family Bank’s capital base, supporting regional expansion and investment in new technology.

The 2025–2029 strategy includes a shift to a holding company structure, regional growth in East and Central Africa, and a KSh 1 billion investment in digital systems. The goal is to join Kenya’s Tier 1 banking group by 2029.

For real time market updates and analysis, join our WhatsApp Channel.

Half-Year 2025 Results

For H1 2025, Family Bank’s net profit rose 39% to KSh 2.28 billion from KSh 1.65 billion. Profit before tax was KSh 2.93 billion against KSh 2.32 billion a year earlier. Interest income grew 24% to KSh 11.39 billion, with loans at KSh 100.9 billion and securities at KSh 3.4 billion. Non-interest income rose 18% to KSh 2.68 billion. Deposits increased 26% to KSh 150.4 billion and total assets 22% to KSh 192.9 billion.

Net interest income was KSh 6.95 billion, up 40%. Operating expenses grew 36% to KSh 6.71 billion. Loan loss provisions were KSh 664 million. Gross NPLs rose to KSh 15.2 billion from KSh 14.1 billion, but net NPLs held at KSh 3.4 billion. The core capital ratio was 13.3% versus the 10.5% minimum, while liquidity was strong at 53.1% against the 20% requirement.

Risks persist. The non-performing loan ratio was 14.1% in early 2025, below the sector’s 16% average but still elevated. The cost-to-equity ratio is above 60%, showing efficiency pressure. Market appetite for new listings is also uncertain, with few fresh entries on Kenya’s equity market in recent years.

If approved, Family Bank’s NSE entry would be the first major bank listing in years. It could revive market activity and set a path for other mid-tier lenders. The October 27 EGM will decide the bank’s direction, a decision investors and regulators will watch closely.

Published Date: 2025-10-01 12:33:32
Author: Harry Njuguna
Source: News Central
Harry Njuguna

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