Prime Bank’s net profit for the first quarter of trading ended March 2024 fell by 2.2 percent to Sh1.04 billion on reduced non-interest income.
The decline in net earnings from Sh1.04 billion posted in the preceding similar period came on the back of non-interest income, mainly earned from fees and commissions on loans and advances, dipping by 29.6 percent to Sh591.3 million from Sh839.7 million.
Net interest income, however, rose 6.7 percent to Sh1.67 billion as the loan book hit Sh55.28 billion at the end of March 2024 from Sh45.3 billion in a similar period last year.
Operating expenses reduced by 11.5 percent to Sh1.13 billion on reduced depreciation and amortisation charges as well as a fall in other expenses.
The fall in operating expenses was despite the lender increasing its loan loss provisions 2.4 times to Sh104.88 million.
Commenting on the results, chief executive Rajeev Pant noted that, the stable credit and liquidity approach adopted last year continued to support the bank’s performance.
“Going forward, we remain optimistic about the business prospects as we continue to make tangible progress in growing our footprint, product diversification, and leveraging technology,” he said.
