Investment firm Centum has announced a profit drop for its half year period.
Centum reported a Sh. 1.6 billion profit after tax, down from Sh. 2.1 billion during a similar period last year.
It attributed the drop in profits in the six month period ended September to poor performance in its subsidiary, Sidian Bank.
“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.
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 Sh. 86 million as the company opted to “retain cash and earnings at its subsidiaries in light of the challenging operating environment”
The financial services segment of Centum’s business made an operating loss of Sh. 111 million from a profit of Sh. 571 million in the previous year.
