Prime Bank Group has posted a 19.8 percent growth in net profit to Sh4.4 billion for the year ended December 2023, up from Sh3.6 billion the previous year. The growth in the lender’s profitability is due to higher revenues and cost-cutting.
The bank’s operating income grew by 7.1 percent to Sh9.2 billion from Sh8.5 billion, almost solely on higher net interest income which rose to Sh6.5 billion from Sh5.8 billion. The lender's non-funded income remained flat at Sh2.6 billion.
Prime Bank’s non-interest-related expenses fell by 5.8 percent, mostly from reduced provisioning for expected credit losses to Sh522.6 million from Sh635.4 million.
The reduced provisioning has been attributed to a steady non-performing loans ratio despite a notable pickup in gross NPLs.
“During the period under review, our net non-performing loans were at approximately three percent of our book, a commendable outcome compared to the market, reflecting our strong credit appraisal standards and conservative policies,” said Prime Bank CEO Rajeev Pant.
Prime Bank closed the year with an asset base of Sh168.6 billion with net loans and advances to customers edging higher to Sh55.8 billion from Sh40.9 billion.
The bank’s customer deposits have grown to Sh127.1 billion from Sh107.1 billion in the previous year.
During the year, the bank upgraded its core banking system, enhancing security, and faster transaction turnaround times.
