Sidian Bank has recorded an increase in its consolidated net profit to Ksh486 million for the year ended December 31, 2021 from Ksh19 million recorded in 2020.
The increased profitability is attributed to the loan book growth in the period under review, which grew interest income as well as lending fees. The lender received long-term funding of over Kshh3.5 billion in the year from Development Finance Institutions (DFIs) and its partners which has supported the bank’s SME focus as the Home of Biashara Banking. The performance was also driven by higher income on government securities.
Increase in non-funded income in the period also enhanced profitability. This was driven by Trade Finance which continues to be the flagship product of the bank, Foreign Exchange (FX) income as well as banc-assurance income from higher transaction volumes. The bank also had increased digital transaction volumes and, in the period, introduced a one of a kind – Sidian Express till collection solution for businesses.
The impact of the increased incomes was countered by higher interest expense from customer deposits growth as well as expansion of its branch network.
The bank’s balance sheet grew by 24 percent to Ksh41.4 billion compared to Ksh33.5 billion in 2020. Net loans and advances increased by 19 percent due to continued lending to SMEs during the period. Customer deposits grew by 14 percent in the period attributed to continued deposit mobilization as well as increased transactional business from the bank’s customers.
“I am pleased with the bank’s performance this past year. Looking back, we have worked to ensure we have seamless processes and streamlined our digital solutions to offer our customers excellent service. As a bank we are keen on supporting SMEs and bring our services closer to our customers. We have continued our expansion and recently opened a branch in Kamakis, along the Eastern Bypass to bring services closer to customers in that region. We also continue to make investments in the digital space as we provide businesses with tailor-made financial solutions,” Mr Chege Thumbi Sidian Bank’s CEO said.
