Centum Investments’ stake in Sidian Bank has reduced to 29.26 percent in the wake of share sales and a Sh1.9 billion cash call by the small lender in a race to join the mid-tier ranking.
Latest disclosures by Sidian show that Centum's stake, held through Bakki Holdco Limited, fell to 29.26 percent at the end of December 2024 from 40.03 percent a year earlier, as the investment firm moved to cut its exposure in the small lender.
Centum sold its stake to other companies in the period under review, with Afram Limited’s sole owner and director James Maina Muthoni emerging as the biggest beneficiary as his stake jumped to 21.4 percent from 7.91 percent.
Sidian, which emerged from a Sh448 million loss posted in the prior year to post a net profit of Sh287 million in the year under review, raised Sh1.9 billion through a rights issue that overshot the previous target of Sh1.5 billion.
The lender plans to use the money to fund expansion as it eyes a tier II status. Sidian says the additional capital will boost its growth plans including further investment in its trade finance business.
Sidian closed the year with core capital of Sh5.53 billion from Sh4.14 billion a year earlier, cushioning it from additional capital raising at least up to the end of next year when the minimum required core capital will hit Sh5 billion in line with the revised banking regulations.
Last year, Wizpro Enterprises Limited increased its stake in Sidian to 24.2 percent—the second highest after Centum— from 18.27 percent.
The stake of Pioneer General Insurance fell to 18.13 percent from 24.8 percent, signalling that it may have missed out on the rights issue alongside Telesec Africa Limited whose stake dropped to 3.73 percent from 4.5 percent.
The stake of Pioneer Life Investments Limited dropped to 3.28 percent from 4.49 percent, joining its sister company, Pioneer General, in reducing ownership in Sidian.
Sidian’s rise in profit during the year was driven by higher interest income from increased lending and investment in government securities. Loan provisions were however higher on the back of increased non-performing loans.
“In the year, the bank continued lending and adjusted interest rates upwards in line with market interest rates which grew the interest income on loans by 23 percent,” said the lender.
It adds that non-funded income grew on the back of increased trade finance income, channels, and digital income as well as bancassurance income.
During the review period, the bank saw customer deposits jump by 61 percent to Sh44.38 billion from Sh27.62 billion.
“Deposits from customers grew by 61 percent driven by increased transactions by the bank’s customers, as well as continued deposit mobilisation through the 46-branch network and digital channel,” said the lender in the annual report.
