Sidian Bank CEO Chege Thumbi. FILE PHOTO | NMG Sidian Bank has posted a Sh274.7 million net profit in the six months to June, reversing a loss of Sh85.8 million recorded a year earlier.
The improved performance was supported by a rise in both interest and non-interest income while operating expenses went down.
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.
Operating expenses reduced by Sh4 million or 3.6 percent to Sh1.1 billion.
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."
