Prime Bank profit drops marginally to Sh895m on reduced bad loans

Prime Bank has reported a 2.4 per cent dip in after-tax profits for the half-year as it maintained a stable loan book and avoided the pitfalls of bad loans.

Profit for the six months to June hit Sh894.9 million, down from Sh916.2 million last year.

The lender made money from government securities, which increased by Sh92 million to post a return of Sh1 billion while interest income from loans dipped by Sh443 million on reduced lending to post Sh2.3 billion for the period under review.

Customer deposits grew by Sh5 billion, a 9.67 per cent jump, to Sh54.4 billion in six months but loans dipped by Sh4 billion to stand at Sh37 billion from Sh41 billion last year.

“The half-year figures show we’re on strong financial footing. We’re working hard to be at an even better position at the end of the year,” said Prime Bank Managing Director Bharat Jani.

The bank’s bad loans went down by Sh100 million, with gross non-performing loans shrinking to Sh1.4 billion, remaining well contained at two per cent, below the industry average.

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Prime Bank has invested in digital delivery channels to complement its 19 branches across the country.