The Lower Eastern Times Opening The Third Eye
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Sidian Bank has posted a 9 percent increase in profit after tax, recording Sh607.03 million for the quarter ended March 31, 2026, compared to Sh556.94 million in the same period last year. The growth was supported by higher interest income and a rapidly expanding balance sheet.
The lender’s net interest income more than doubled to Sh1.61 billion from Sh736.58 million, while total interest income rose 61.9 percent to Sh2.88 billion, driven mainly by stronger returns from its growing government securities portfolio.
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Interest expenses also increased by 21.8 percent to Sh1.27 billion, but at a slower pace than income growth, helping the bank maintain healthy margins.
The results mark the first quarterly performance under new CEO John Okulo, who assumed office on May 1, 2026, after the departure of long-serving chief executive Chege Thumbi.
Sidian Bank’s total assets grew significantly by 38.1 percent to Sh94.08 billion, while customer deposits surged 47.6 percent to Sh74.16 billion. Deposits have increased more than four times since 2019, reflecting strong inflows in recent years.
Much of the growth has been driven by public sector banking, following Sidian Bank’s appointment as the principal banker for the Nairobi County Government in October 2025, a move that redirected significant funds from rivals such as Co-operative Bank and Equity Bank.
The bank also processes transactions for the Social Health Authority and housing levy collections, as well as maintaining ties with state agencies including Kenya Railways and Kenya Medical Supplies Authority. In March 2026, Nairobi MCAs approved a Sh1.7 billion monthly payroll overdraft facility with the lender.
Despite strong deposit growth, lending rose at a slower pace, with net loans increasing by 11.9 percent to Sh29.38 billion. The bank continued to channel liquidity into government securities, with investment holdings reaching Sh9.94 billion.
Asset quality improved slightly, as gross non-performing loans declined to Sh8.25 billion from Sh8.65 billion, indicating better loan performance.
However, non-interest income dropped by 45.9 percent to Sh557.34 million, mainly due to the absence of a one-off gain recorded in the previous year.
The bank’s capital position strengthened after a Sh3 billion rights issue completed in early 2026, raising core capital to Sh11.77 billion and pushing the capital adequacy ratio to 19.6 percent. Liquidity remained robust at 76.9 percent, well above regulatory thresholds.
