Sidian Bank recorded a net profit of Ksh. 220 million after tax, for the third quarter of 2016.This is against Ksh. 281 million recorded during the same period last year, denoting a 22 per cent drop.
Bank records overall business growth even as profits take a dip
The high uptake of the bank’s loan products, largely bolstered by aggressive marketing and strategic partnerships.
However, Sidian Bank registered an overall growth in its business, with the balance sheet growing by 19 per cent, largely buoyed by growth in customer deposits and the loan book.
Total assets closed at Ksh.21 billion, against Ksh.17 billion for the comparable period last year.
In tandem with the overall growth tangent, customer deposits increased to Ksh14 billion, against Ksh12 billion for the third quarter of 2015, while loans and advances closed the period under review at Sh2.1 billion, compared to Sh1.7 billion previously.
Operating increased expenses to Ksh1.7 billion for the quarter, against Ksh1.3 billion for the corresponding period last year. This was attributed to costs associated with re-branding early in the year, as well as provision for bad loans.
While the bank increased provisions by Ksh 75 million, the cumulative provisions dropped by Ksh. 129 million following a Ksh. 300 million write-off of provisions relating to fully provided for bad debts in the first half of the year.
CEO Titus Karanja expressed confidence in the banks strategy.
“These results demonstrate that our transformation program is bearing fruit. Despite the one-off hits from re-structuring costs, which was expected, we are glad to note that we were able to grow our core business in an increasingly competitive environment. "
Sidian Bank’s interest income rise by 25 per cent to Sh2.4 billion, against Sh1.95 billion recorded during the same period last year.
A significant increase in customer deposits saw interest expense grow to Sh911 million for the quarter compared to Sh726 million which was recorded for the same quarter last year.
Overall, customer deposits for the bank grew to Sh723 million from the Sh613 million recorded the previous comparable period.
The Bank partnered with online taxi hailing service Uber and medical equipment financier Medical Credit Fund.
These partnerships, respectively, provide access to finance for taxi entrepreneurs and purchase of medical equipment by hospitals
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