Prime Bank Group, Kenya’s largest Tier II lender and the tenth biggest by market share, recorded a 27.6% increase in net profit to KSh 5.56 billion for the year ending December 2025, buoyed by declining funding costs that delivered the widest net interest margin in its 33-year history.
Net interest income soared 49.1% to KSh 9.93 billion, while interest income climbed 9.8% to KSh 20.79 billion, largely driven by stronger returns from an expanding government securities portfolio. Meanwhile, interest expenses fell 11.6% to KSh 10.86 billion as deposit repricing took effect during the Central Bank of Kenya’s monetary easing cycle.
Since 2020, the bank’s profit after tax has grown at a compound annual rate of 19.3%, with total assets more than doubling from KSh 118.25 billion to KSh 277.25 billion. Customer deposits have nearly doubled to KSh 170.67 billion, while earnings per share have risen sharply from KSh 347 to KSh 836.
The strong growth in net interest income offset a 22.5% drop in non-interest income to KSh 1.86 billion, which has now declined for three consecutive years from its peak of KSh 2.69 billion in 2022. Overall operating income rose 30.1% to KSh 11.79 billion.
Managing Director Rajeev Pant described 2025 as a challenging year for Kenya’s banking sector, noting that the bank’s 23.8% profit growth reflects a cautious yet strategic approach to risk management.
On the balance sheet, total assets expanded by 44.6% to KSh 277.25 billion, largely driven by increased holdings in government securities. Held-to-maturity investments reached KSh 75.85 billion, while available-for-sale securities nearly doubled to KSh 94.25 billion.
Net loans remained unchanged at KSh 55.56 billion for the third consecutive year. However, with Treasury yields expected to decline further as monetary easing continues into 2026, the bank’s heavy reliance on securities could face pressure.
Pant noted that maintaining a stable loan book and strong liquidity has positioned the bank as a reliable financial partner. Its liquidity ratio stood at 78.7%, significantly above the Central Bank’s 20% minimum requirement.
Shareholders’ funds more than doubled to KSh 101.92 billion, largely due to a KSh 57.9 billion increase in revaluation reserves. Core capital rose to KSh 32.55 billion, comfortably exceeding the regulator’s 2029 minimum threshold of KSh 10 billion.
However, efficiency weakened as operating expenses jumped 40.4% to KSh 6.22 billion, outpacing revenue growth. Staff costs rose 57% to KSh 3.22 billion following expansion to 25 branches, including new locations at Broadwalk Mall, Our Mall (Karen), and Lang’ata, alongside three Prime Express centres. The cost-to-income ratio widened to 52.8% from 48.9%.
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Asset quality improved, with gross non-performing loans declining 7.4% to KSh 5.59 billion. However, loan loss provisions rose sharply to KSh 727.85 million, marking the first increase since peaking in 2020.
The Kantaria family retains a controlling stake of about 67% through various holding companies, while AfricInvest Azure SPV holds 24.2% following a KSh 5.1 billion capital injection in 2019.
Founder Rasik Kantaria was recognised as Kenya’s first dollar billionaire in December 2025, driven by rising valuations at FMBCapital Holdings, which operates across several African markets.
During the year, the bank launched its Prime Remit international money transfer service and strengthened its partnership with Network International in February 2026 to boost digital payments.
Looking ahead, Pant outlined plans for a new corporate mobile banking platform, enhanced user experience initiatives, additional branch expansion, and a continued focus on trade finance, SME lending, and regional corporate banking.
