Exchange withdrawal fee much cheaper than the transaction fee?

Bought £100 worth of BTC from kraken, after fees came to £99.75 or something. Chose with withdraw to my hardware wallet, the withdrawal fee was 0.00005BTC, which equates to £1.08 or something similar.

Incoming I have £98.48 waiting for confirmations, so the cost to get my BTC from the exchange to my Jade was £1.30ish.

I went and checked the transaction on mempool, and they paid a whopping 26,470 sats £5.74 at 23.3sat/vb, when the average ~10 mins right now is 11sat/vb.

So my question is: How is that profitable for them, and why they overpay so much? They essentially got £0.23 + £1.08 from me as their fee to execute a market order and withdraw it from their platform, but paid £5.74 on the transfer.

Am I missing something?