Prime Bank Group, Kenya's largest Tier II lender and tenth biggest bank overall by market share, has posted a 27.6% rise in net profit to KSh 5.56 billion for the year ended December 2025, as falling funding costs drove the widest net interest margin in the privately held bank's 33-year history.
- •Net interest income jumped 49.1% to KSh 9.93 billion while interest income rose 9.8% to KSh 20.79 billion, supported by returns on a growing government securities portfolio.
- •While interest expense dropped 11.6% to KSh 10.86 billion as deposit repricing took hold during the Central Bank of Kenya's monetary easing cycle.
- •Since 2020, profit after tax has compounded at 19.3% annually, total assets have expanded from KSh 118.25 billion to KSh 277.25 billion, customer deposits have nearly doubled to KSh 170.67 billion, and earnings per share has risen from KSh 347 to KSh 836.
The NII surge more than offset a 22.5% decline in non-interest income to KSh 1.86 billion, a line that has weakened for three consecutive years from a peak of KSh 2.69 billion in 2022. Total operating income rose 30.1% to KSh 11.79 billion.
"The 2025 financial year was a test of agility for the banking sector in Kenya," Managing Director Rajeev Pant said.
"Our 23.8 percent profit growth amid such times is a testament to our conservative yet strategic approach to risk management."
On the balance sheet, the 44.6% asset expansion to KSh 277.25 billion was concentrated in government securities. Held-to-maturity paper rose to KSh 75.85 billion and available-for-sale securities nearly doubled to KSh 94.25 billion.
Net loans held flat at KSh 55.56 billion for the third straight year. With Treasury yields compressing as the CBK continues easing, the securities-heavy model that powered FY2025's margin breakout faces headwinds if the rate cycle extends deeper into 2026.
"By managing our liquidity and maintaining a stable loan book, we positioned Prime Bank as a safe and stable partner for our clients," Pant said.
The bank's liquidity ratio stood at 78.7%, nearly four times the CBK's 20% statutory minimum.
Shareholders' funds more than doubled to KSh 101.92 billion, driven by a KSh 57.9 billion jump in revaluation reserves on available-for-sale financial assets. Core capital of KSh 32.55 billion is more than triple the CBK's 2029 minimum requirement of KSh 10 billion.
Efficiency deteriorated as Operating expenses rose 40.4% to KSh 6.22 billion, outpacing revenue growth, with staff costs up 57% to KSh 3.22 billion as the bank expanded to 25 branches. New openings at Broadwalk Mall, Our Mall (Karen), and Langata were complemented by three Prime Express service centres. The cost-to-income ratio widened to 52.8% from 48.9%.
Asset quality improved with gross non-performing loans declining 7.4% to KSh 5.59 billion, though loan loss provisions tripled to KSh 727.85 million from a five-year low of KSh 242.15 million, the first uptick since provisions peaked at KSh 1.16 billion in 2020.
The Kantaria family controls approximately 67% of the bank through a network of holding companies led by Prime Capital Holdings (14.4%), with AfricInvest Azure SPV, the joint vehicle of Tunisia's AfricInvest and Kenya's Catalyst Principal Partners, holding 24.2% following a KSh 5.1 billion capital injection in 2019.
Founder Rasik Kantaria was named Kenya's first dollar billionaire in December 2025 on surging valuations at FMBCapital Holdings, the Mauritius-listed group with banking operations across Malawi, Botswana, Mozambique, Zambia, and Zimbabwe.
The bank launched its Prime Remit international money transfer service during the year and deepened its partnership with Network International in February 2026 to accelerate digital payments capability. Pant outlined a 2026 roadmap that includes a new corporate mobile banking application, an enhanced user experience project, and additional branch openings, with strategic focus on trade finance, SME lending, and regional corporate banking.
