(NAIROBI, KENYA) – Prime Bank Group posted a 23.6% rise in net profit for the half year ended June 2026 to KES3.3 billion ($25.4 million / £20 million), driven mainly by lending to the government.
The lender, which has a regional presence outside the East African Community, recorded a profit after tax of KES2.6 billion ($20 million / £15.8 million) in the same period last year.
Prime Bank maintained a conservative lending approach with only 36% of its KES168.1 billion ($1.29 billion / £1.02 billion) in deposits converted to loans. The bank has a loan book of KES60.5 billion ($465.4 million / £366.7 million), with government securities forming the bulk of its assets at KES148.3 billion ($1.14 billion / £898.8 million).
Investment in Treasury bills and bonds increased 24.1% to KES148.3 billion from KES119.5 billion ($919.2 million / £724.2 million) invested in the same period last year.
The bank’s loan book grew by 8.6% to KES60.5 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 Kenya, which has stirred credit appetite, with private sector borrowing expanding by double digits for the first time in over two years in June.
Rajeev Pant, the bank’s managing director, said the focus remains on maintaining a strong and sustainable business while continuing to support customers and create long term value. He said 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.
Returns from government securities increased 14.7% to KES6.3 billion ($48.5 million / £38.2 million), higher than the KES3.4 billion ($26.2 million / £20.6 million) interest earned from loans and advances.
Prime Bank’s net non-performing loans declined to KES374 million ($2.9 million / £2.3 million) from KES840 million ($6.5 million / £5.1 million) in the same period last year. Management attributed the decline to tighter credit checks, closer monitoring of borrowers and early intervention on overdue accounts.
Prime Bank, the highest ranked medium sized lender according to Central Bank data, has business interests in Malawi, Botswana, Mozambique, Zambia and Zimbabwe through its associate bank, First Capital Bank. The bank’s regional operations posted a net loss of KES39 million ($300,000 / £236,000), down from a net profit contribution of KES57 million ($438,000 / £345,000) in the previous review period.