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Sidian Bank Reverses Fortunes With Ksh275m Net Profit

Aug 17, 2021
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Sidian Bank has reversed its fortunes for the first half of this year posting a Ksh274.7 million net profit.

The Lender has managed to reverse a loss of Ksh85.8 million recorded last year.

This was made possible by the easing of the measures that had earlier been put to caution Kenyans from the effects of Covid-19 coupled with a rise in both interest and non-interest income.

Sidian’s operating expenses went down over by Ksh4 million representing a 3.6 percent to Ksh1.1 billion.

The lender, in which Centum Investment   holds a 72.93 percent stake, saw its total interest income in the review period grow 52.38 percent to Sh1.6 billion as the loan book expanded 32.1 percent to Sh21.5 billion.

Total non-interest income, mainly from fees and commissions, grew 18.9 percent to Sh773.8 million, boosting the bottom line.

Sidian Bank CEO Chege Thumbi

This was supported by a 47.8 percent cut in loan loss provisioning to Sh87.2 million.

The return to profitability in the review period comes after the lender received a series of new debt and equity funding.

“Looking back, I am very encouraged with the progress that the bank has made so far,” said Sidian Bank chief executive Chege Thumbi in a statement on Tuesday.  

“We have streamlined our systems and developed robust digital banking solutions to ensure we serve our clients better despite the economic strain caused by the Covid-19 pandemic.”

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