Prime Bank profit rise 23.6pc on government lending

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Prime Bank Group has posted a 23.6 percent jump in net profit for the half-year ended June 2026 to Sh3.3 billion, mainly driven by lending to the government.

The lender, which has a regional presence outside the East African Community, recorded a profit after tax of Sh2.6 billion in a similar period last year.

Prime Bank maintained a conservative lending approach with only 36 percent of its Sh168.1 billion in deposits converted to loans. The bank has a loan book of Sh60.5 billion, with government securities being the bulk of its assets at Sh148.3 billion.

Investment in Treasury bills and bonds increased from Sh119.5 billion invested in a similar period last year, a 24.1 percent growth.

The bank’s loan book grew by 8.6 percent to Sh60.5 billion, with the three months to June marking the first phase of growth after a flat run of more than nine months.

The increased lending follows a decline in interest rates in the country, which has stirred credit appetite, with private sector borrowing expanding by double digits for the first time in June in over two years.

“Our focus remains on maintaining a strong and sustainable business while continuing to support our customers and create long-term value,” said Rajeev Pant, the bank’s managing director.

“The bank remains optimistic about the second half of the year, with a continued focus on supporting trade, SMEs, and corporate banking needs across the region,” added Mr Pant.

Returns from government securities increased 14.7 percent to Sh6.3 billion, which was higher than the Sh3.4 billion interest earned from loans and advances.

Prime Bank’s net non-performing loans declined to Sh374 million down from Sh840 million in the same period last year, which management attributed to tighter credit checks, closer monitoring of borrowers, and early intervention on overdue accounts.

Prime Bank, which is the highest-ranked medium-sized lender as per Central Bank data, has business interests in other African countries, including Malawi, Botswana, Mozambique, Zambia, and Zimbabwe, through its associate bank, First Capital Bank.

The bank’s regional operations posted a net loss of Sh39 million, down from a contribution of a net profit of Sh57 million in the previous review period.

Reporting originally appeared via Business Daily. Read the full source for additional context.