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Centum net profit drops 21pc on poor performance of bank subsidiary

Centum Investment chief executive James Mworia. PHOTO | SALATON NJAU
Centum Investment chief executive James Mworia. PHOTO | SALATON NJAU | NMG 

Investment firm Centum #ticker:ICDC has reported a 21 per cent drop in profit after tax in the six months to September due to poor performance in its subsidiary, Sidian Bank.

Centum reported a Sh1.6 billion profit after tax, down from Sh2.1 billion during a similar period last year.

The company said that group performance was weighed down by Sidian Bank which took a hit from the interest rate caps.

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While sales in its publishing business rose 41 per cent to Sh535 million, interest income fell 37 per cent to Sh1.6 billion.

Dividend income fell 55 per cent to Sh86 million as the company opted to “retain cash and earnings at its subsidiaries in light of the challenging operating environment”

Operating loss

Overall, the financial services segment of Centum’s business made an operating loss of Sh111 million from a profit of Sh571 million in the previous year.

“Where we’ve had challenges is in financial services that is Sidian. My view is that those challenges are temporary,” said Centum Group chief executive, Mr James Mworia.

The trading segment of Centum’s business, which includes beverages, recorded a nine per cent increase in profitability to Sh549 million.

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