Prime Bank’s loan book remained flat at Sh55.5 billion despite a 19.1 percent rise in customer deposits to Sh170.6 billion.
The bank’s investment in government securities rose 85 percent to Sh172.9 billion from Sh93.4 billion, resulting in a 31.2 percent increase due to interest earned from Treasury bills and bonds.
“The 2025 financial year was a test of agility for the banking sector in Kenya. By managing our liquidity and maintaining a stable loan book, we positioned Prime Bank as a safe and stable partner for our clients. Our profit growth amid such times is a testament to our conservative yet strategic approach to risk management," said the bank’s Managing Director, Rajeev Pant.
The conservative lending approach had the bank convert less than a third of its deposits, 32.5 percent, to loans. Despite the increase in deposits, up 19.1 percent, the lender's interest expenses dropped by 11.7 percent, indicating its ability to mobilize cheap deposits.
Its net interest income rose 49.1 percent, riding on the expansion in earnings from government securities.
“During the period under review, the Bank prioritized supporting existing customers while actively managing its portfolio and closely monitoring non-performing loans, a factor that significantly affected the industry, and enriched Prime Bank in a positive outlier,” said Mr Pant.
Prime Bank’s non-performing loans stood at Sh5.5 billion, a drop from Sh6 billion a year earlier.
The bank’s regional operations contributed Sh327 million to Prime Bank’s net profit, being more than double the Sh130 million contributed in the previous period.
Prime Bank holds a 10.6 percent stake in First Merchant Bank Limited (Malawi), 6.62 percent in Capital Bank (Botswana), 13.5 percent in Capital Bank Mozambique SA, and 5.2 percent in Capital Bank Limited (Zambia).
