Prime Bank Posts Sh567m Net Profit

For the first quarter ended March 2019, Prime Bank has announced a 20.4 percent rise in net profit owing to transaction-based and higher interest income.

The bank’s profit totaled Sh567.7 million for the period as compared to Sh471.5 million from a similar period in 2018.

The lender’s total interest income during the review period stood at Sh2.1 billion, representing a 12.8 percent increase. This is largely attributed to higher income from money lent to the government which jumped 51.29 percent to Sh1 billion during the period under review.

However, income from advances and loans to the bank’s customers fell 14.09 percent (Sh166 million) to Sh1 billion.

Prime Bank also reaped benefits from a rise in non-funded income, which grew from Sh408 million recorded in the same quarter a year earlier to Sh507.8 million in this quarter. This represents a 24.47 percent increase.

Furthermore, the bank’s total operating expenses experienced a17.81 percent rise to stand at Sh953.4 million.

Private equity firms, AfricInvest and Catalyst Principal Partners, recently allocated capital investments worth Sh5.1 billion to the bank.

Prime bank said that the deal, in which the institutional investors took a 24.2 percent stake, will help fund growth.

The lender’s second-biggest shareholder is Prime Capital, which holds a 14.36 percent equity. Others include Nason Ltd, Jameson Ltd, Capital Nominees, Prime Trustees, and Crason Ltd; each holding an 8.02 percent stake.