Lead image for Sidian Bank's Profit Jumps 82% Despite Fivefold Rise in Bad Loan Provisions.
Sidian Bank has posted an 82.4% jump in half-year profit to KSh 1.72 Bn as operating income rose 48.8% to KSh 8.11 Bn, but the earnings expansion came alongside a sharp rise in credit costs.
- Loan-loss provisions have surged nearly fivefold to KSh 2.44 Bn, making asset quality a key counterweight to the lender’s rapid balance-sheet growth.
- Profit before tax rose 57.7% to KSh 2.15 Bn in the six months ended June 2026 from KSh 1.36 Bn a year earlier.
- The lender's core capital has nearly doubled to KSh 12.01 Bn, while total capital has risen to KSh 13.59 Bn.
Net interest income increased 21.6% to KSh 4.43 Bn, despite interest expenses rising 88.7% to KSh 4.80 Bn as funding costs increased faster than interest income.
Non-interest income provided the stronger revenue lift, more than doubling to KSh 3.67 Bn from KSh 1.80 Bn and accounting for about 45% of operating income. The increase helped offset higher operating and credit costs as Sidian continued to expand its balance sheet.
Total assets grew 28.1% year-on-year to KSh 97.57 Bn, putting the lender within KSh 2.43 Bn of the KSh 100 Bn asset mark. Customer deposits increased 22.5% to KSh 73.45 Bn, extending a rapid expansion from KSh 25.95 Bn in June 2023. Deposits have nearly tripled over the three-year period, although they eased from KSh 74.06 Bn in March 2026.
Net loans and advances grew 23.1% to KSh 33.14 Bn, while the bank's holdings of Kenya government securities increased 39.1% to KSh 45.76 Bn. The securities portfolio remained about KSh 12.62 Bn larger than the net loan book, reflecting the deployment of Sidian's enlarged funding base beyond customer lending.
Gross non-performing loans increased 6.4% to KSh 8.54 Bn from KSh 8.03 Bn, substantially slower than loan growth. Provisions against non-performing loans increased to KSh 3.89 Bn from KSh 2.62 Bn.
Capital buffers also strengthened. Sidian's total capital-to-risk-weighted-assets ratio stood at 21.3%, compared with the 14.5% statutory minimum, while its liquidity ratio was 71.1%.