Prime Bank has reported a 2.2 per cent decrease in its net profit for the first quarter ending March 2024, attributing the decline to a significant reduction in non-interest income.

The bank's net earnings fell to Sh1.04 billion, down from Sh1.06 billion in the same period last year.

The sharp fall in non-interest income, primarily derived from fees and commissions on loans and advances, played a crucial role in this dip.

Non-interest income plummeted by 29.6 percent to Sh591.3 million from Sh839.7 million.

Conversely, net interest income saw an uptick, rising by 6.7 per cent to Sh1.67 billion.

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This increase was supported by an expansion in the bank’s loan book, which grew to Sh55.28 billion by the end of March 2024, up from Sh45.3 billion in the comparable period last year.

The bank also managed to cut its operating expenses by 11.5 per cent, bringing them down to Sh1.13 billion.

This reduction was driven by lower depreciation and amortisation charges, alongside a decrease in other unspecified expenses.

Despite these cost-saving measures, the bank significantly increased its loan loss provisions, which rose 2.4 times to Sh104.88 million.

Chief Executive Rajeev Pant highlighted the bank’s strategic focus that has helped maintain performance.

“Going forward, we remain optimistic about the business prospects as we continue to make tangible progress in growing our footprint, product diversification, and leveraging technology,” he said.

Pant also emphasised that the stable credit and liquidity approach adopted last year had been instrumental in supporting the bank’s performance through the first quarter of 2024.

Prime Bank remains focused on navigating the challenging economic landscape by advancing its strategic initiatives and maintaining robust financial health.