NAIROBI, Kenya, May 20 – Sidian Bank has reported a 9.0 percent rise in profit after tax to Sh607.03 million for the quarter ended March 31, 2026, up from Sh556.94 million in the same period last year, supported by stronger interest income and rapid balance sheet expansion.
The lender’s performance was driven by a sharp increase in net interest income, which more than doubled to Sh1.61 billion from Sh736.58 million. Total interest income rose 61.9 percent to Sh2.88 billion, boosted by returns from a growing government securities portfolio.
Interest expenses increased 21.8 percent to Sh1.27 billion, a slower pace that helped the bank preserve margins despite rapid growth in its funding base.
The results mark the first quarterly performance under incoming CEO John Okulo, who took over on May 1, 2026, following the exit of long-serving CEO Chege Thumbi.
The bank’s balance sheet expanded strongly, with total assets rising 38.1 percent to Sh94.08 billion, while customer deposits jumped 47.6 percent to Sh74.16 billion. Deposits have grown more than fourfold since 2019, reflecting accelerated inflows over the past two years.
Growth has largely been anchored on public sector business, following the appointment of Sidian Bank as principal banker to Nairobi County Government in October 2025. This shifted significant revenues and funds from lenders such as Co-operative Bank of Kenya and Equity Bank.
The bank also handles transactions for the Social Health Authority and the housing levy, alongside relationships with state entities including Kenya Railways and Kenya Medical Supplies Authority. In March 2026, Nairobi MCAs also approved a KSh1.7 billion monthly payroll overdraft facility with the lender.
Despite strong deposit growth, lending expanded modestly, with net loans rising 11.9 percent to Sh29.38 billion. The bank continued to channel much of its liquidity into Treasury bills and bonds, with investment securities at Sh9.94 billion.
Asset quality improved, with gross non-performing loans easing to Sh8.25 billion from Sh8.65 billion, while net NPL exposure declined sharply.
Non-interest income, however, dropped 45.9 percent to Sh557.34 million, largely due to the absence of a one-off gain recorded in the previous year.
Capital strength improved significantly following a Sh3 billion rights issue completed earlier in 2026, lifting core capital to Sh11.77 billion and boosting the capital adequacy ratio to 19.6 percent. The liquidity ratio remained strong at 76.9 percent, well above regulatory requirements.
