Sidian Bank Swings To Profit Of KSH 147 Million On Higher Income

By  |  August 19, 2021

Mid-sized commercial lender Sidian Bank swung to a profit of KSH 146.54 million (USD 1.33 million) for the March quarter from a loss of KSH 22.69 million last year on higher revenues.

The Nairobi-based bank, which primarily services urban and rural SMEs in Kenya, saw interest income on loans and advances rise 37% to KSH 576 million. Interest income from government securities more than doubled to KSH 189 million from 76 million in the year-ago March quarter. Sidian Bank, in which Centum Investment  holds a 72.93%, saw total interest income up 52% to KSH 768 million.

Sidian, which rebranded from K-Rep Bank to Sidian in 2016, saw its customer base grow and interest paid out on customer deposits increase 28% to KSH 278 million. Including interest paid on deposits by other banks, total interest expenses rose 45% to KSH 434 million. With higher revenue despite expenses, Sidian Bank saw its net interest income
increase 62% to KSH 334 million. The bank also made 48% higher income on fees and commissions it charges on its loans to KSH 184 million.

With the global turbulence in markets, the bank however saw a 50% dip in income on foreign exchange trade to KSH 33.5 million. This and other factors saw total non-interest income remain flat at KSH 353 million.

Total operating income rose 23% to KSH 688 million. The bank set aside less provisions as its bad loans reduced in the March quarter. Loss loss provision was reduced to KSH 37.5 million from KSH 89 million in the year-ago, after gross non-performing loans and advances fell to 26% to KSH 2.4 billion. Total non-performing loans also fell 26% to 2.11 billion in the March quarter. 

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The bank’s liquidity ratio, however fell to 38.8% from 42.1%. But still remained well above statutory requirement of 20%.

Image credit: Sidian Bank

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