Centum CEO James Mworia. [Photo/the-star.coke]Centum Investment Limited has recorded a 21 per cent drop in half year net profit.
The firm posted Sh1.6 billion in September 2017 compared to Sh2.1 billion in September 2016.
According to Centum, the decline is was contributed by the prolonged political period and the poor performance subsidiary, Sidian Bank,.
Sidian Bank recorded a massive drop of 37 per cent in its interest income.
Centum Chief Executive Officer James Mworia in an investor briefing on Monday said that Sidian’s depressing performance is attributable to the negative impact of the interest rate capping regulations on the entire banking sector.
“Sidian is a third tier bank. It is mostly engaged in micro-lending. The credit pricing as a result of the rate cap law has hit the bank hard. But we are in a process of restructuring its balance sheet to bring operating costs down in order to revise the trend,” Mr Mworia said. Centum Chief Executive Officer James Mworia in an investor briefing on Monday said that Sidian’s depressing performance is attributable to the negative impact of the interest rate capping regulations on the entire banking sector.
“Sidian is a third tier bank. It is mostly engaged in micro-lending. The credit pricing as a result of the rate cap law has hit the bank hard. But we are in a process of restructuring its balance sheet to bring operating costs down in order to revise the trend,” Mr Mworia said. Centum holds a 74 per cent controlling stake in Sidian.