Prime Bank has reported strong financial results for the nine months ending September 2025, showing steady growth powered mainly by a sharp rise in earnings from interest-related activities and a larger investment in government securities.
The financial statements released on Monday show that profit after tax rose by 29.5 percent, increasing from Sh3.40 billion recorded in September 2024 to Sh4.40 billion in September 2025. The bank attributes this performance to a strong lift in net interest income, which continued to be the main source of its revenue.
During the period, net interest income grew from Sh4.58 billion to Sh6.98 billion, marking a 52.2 percent rise. This jump placed interest income at the centre of the bank’s earnings, showing the growing importance of core banking operations in shaping the year’s results.
While interest income strengthened, non-interest income went down. The figures show that non-interest revenue fell by 30.7 percent, dropping from Sh2.34 billion to Sh1.62 billion. Even with this fall, total operating income still increased by 24.2 percent to Sh8.59 billion, supported mainly by the strong performance of interest-driven business.
The bank’s operating expenses also grew, rising by 18.2 percent from Sh3.28 billion in the previous year to Sh3.88 billion. At the same time, loan loss provisions went up by 63.6 percent to Sh357 million, compared to Sh218 million last year, reflecting a more cautious approach to credit risk.
Despite the higher costs and heavier provisions, profit before tax still rose by 29.7 percent, climbing from Sh3.64 billion to Sh4.72 billion. This points to effective cost control and growing income strength during the review period.
Prime Bank’s balance sheet also expanded strongly. Total assets increased by 31.4 percent, moving from Sh179.1 billion to Sh235.3 billion, showing the bank’s growing investment capacity and funding strength. Equity rose even faster, jumping by 84.9 percent from Sh40.5 billion to Sh75.0 billion, marking a firm improvement in its capital position.
The bank also increased its holdings in government securities. The report notes that, “Govt securities jumped 41.2 percent to Sh71.19 billion,” compared to Sh50.4 billion in the same period last year. This shift shows a preference for stable, income-generating assets.
Customer deposits rose by 15.6 percent, from Sh135.6 billion to Sh156.7 billion, showing consistent confidence from account holders. Meanwhile, the loan book stayed nearly unchanged. The report states that the loan book “remained flat at Sh56.18 billion,” compared to Sh56.1 billion last year, reflecting a careful lending strategy.
The bank also recorded an improvement in asset quality, with gross non-performing loans dropping by 18.3 percent from Sh6.51 billion to Sh5.32 billion. Core capital rose from Sh27.5 billion to Sh29.4 billion, an increase of 7.1 percent.
Overall, the results paint a picture of a bank leaning more on interest income, growing its treasury investments, managing risk more tightly, and building a stronger capital base. With these gains, Prime Bank enters the final quarter of 2025 with a firm financial position supported by strong deposits and disciplined credit management.
