Prime Bank Group posted 15.7 percent jump in net profit in the period ended September 2022, following growth in non-funded income especially foreign exchange trading income and interest from government securities.
The lender registered Sh2.69 Billion in profits after tax from Sh2.32 billion in a similar period last year.
The profit growth was mainly driven by interest income from loans and government securities, foreign exchange trading and improved operational efficiencies.
Interest income from loans and advances grew by 10.1 percent to Sh8.48 billion from Sh7.70 billion in the previous period.
Non-interest income registered a 19.3 percent rise to Sh1.93 billion, with a performance from foreign exchange trading which posted 70.8 percent to Sh355.99 million from Sh208.42 million during the period under review.
Net interest income was recorded at Sh4.2 billion from Sh3.93 billion, representing 7.1 percent growth, while total operating income grew by 10.7 percent to Sh6.13 billion.
“Going forward, the improved results signal a more energetic and renewed effort towards the final quarter of the year," the bank’s managing director Bharat Jani said.
"As we mark our 30 years of service to our customers this year, these impressive results reinforce our pledge to our customers of always putting them first”.
The Tier-II lender has also attributed the performance to driven growth in customer deposits that boosted its investment in government securities by 11 percent to Sh77.61 billion from Sh69.94 billion.
Interest from government securities was 11 percent to Sh5.3 billion from Sh4.78 billion.
Net loans and advances to customers were up 5.7 percent to Sh39.25 billion, from Sh37.13 billion.
Prime Bank last year entered the mobile lending business with short-term loans, seeking to grow its customer base in the mass market, allowing borrowers access to loans from Sh5,000 to Sh150,000 with repayment periods between 30 days to three months.
Other banks, including KCB, Co-op Bank and Equity have reported a 20.9 percent, 47 percent and 26.61 percent growth respectively in net profits in the nine months ended September to Sh30.6 billion, Sh17 billion and Sh33.35 billion respectively.