Kenya: Prime Bank’s net profit boosted by bonds

Prime Bank, Bank of Kenya reported net profit of 1.25 billion shillings (approximately $ 12.5 million) in the first half of 2019, up 32 percent year-on-year.

This growth is mainly due to the bank’s strategy of reducing loans to the private sector (from 35.8 billion to 34 billion shillings) to invest more in government bonds (from 20.5 billion to 36.6 billion shillings). As a result, interest earned on government securities rose from 1.4 billion shillings to 2.2 billion shillings, compared to a decline of 2.2 billion shillings to 1.9 billion shillings for interest on loans.

Founded in 1992, Prime Bank operates in Kenya, Malawi, Botswana, Mozambique, Zambia and Zimbabwe. In 2018, the bank sold a 24.2% stake in AfricInvest Azuez, an ad hoc vehicle created by AfricInvest and Catalyst Principal, two private equity companies, for a total of 5.1%. billion shillings (nearly 50 million USD).

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