NAIROBI, Kenya – Sidian Bank recorded a 28.9 per cent increase in net profit to Sh1.21 billion in the first half of 2026, supported by stronger earnings from lending, mortgages and government securities.
The lender’s profit growth came as net interest income more than doubled, rising 123.1 per cent to Sh3.64 billion in the six months ended June 30, 2026.
The strong increase in interest income helped offset a sharp decline in non-interest income, which fell by 44 per cent to Sh1.01 billion during the period.
Loans and deposits expand
Sidian’s lending business continued to expand, with loans and advances increasing 23.1 per cent to Sh33.14 billion.
Customer deposits also grew strongly, rising 22.5 per cent to Sh73.45 billion.
The growth in deposits provides the bank with a larger funding base to support lending to individuals and businesses, while the increase in loans points to stronger credit activity during the period.
Sidian said its earnings were supported by higher returns from its loan book, mortgages and investments in government securities.
Asset quality improves
The bank also recorded an improvement in asset quality during the first half of the year.
Net non-performing loans declined by 24.7 per cent to Sh3.07 billion, suggesting a reduction in the value of loans classified as non-performing after provisions.
The improvement comes as banks continue to focus on managing credit risk while expanding lending in a challenging economic environment.
For Sidian, the combination of stronger interest income, loan growth and lower non-performing loans provided support for the rise in profitability.
Strong growth follows 2025 turnaround
The latest results build on a significant improvement in Sidian’s full-year performance in 2025.
Profit after tax rose to Sh1.73 billion in 2025, up from Sh287.35 million in 2024.
During the same period, net interest income increased by 54.6 per cent to Sh4.43 billion, while non-interest income more than doubled to Sh3.8 billion.
The 2025 performance marked a substantial recovery in the bank’s profitability and created a stronger base going into 2026.
Interest income becomes key growth driver
The first-half results point to a changing composition of Sidian’s earnings.
While non-interest income declined sharply, the 123.1 per cent growth in net interest income more than compensated for the reduction.
The bank’s ability to grow its loan portfolio while increasing earnings from interest-generating assets will therefore remain important to sustaining profitability through the remainder of 2026.
At the same time, the decline in non-interest income highlights the need for Sidian to continue diversifying its revenue streams beyond lending and investment income.
With deposits growing faster than loans during the period, the bank also retains room to support further credit expansion, provided asset quality remains under control.
Sidian’s half-year performance consequently reflects continued momentum from its 2025 turnaround, with stronger interest income, expanding lending and an improvement in non-performing loans underpinning growth in profitability.
