SBM BANK KENYA PROFIT HITS THE ROOF

SBM BANK KENYA PROFIT HITS THE ROOF

By Douglas Muriithi

SBM Bank (Kenya) Limited has

reported a 7.7% increase in operating income

year-on-year, resulting to a profit before tax of

Kshs. 66 Million for the first quarter of 2020.

The growth in business has largely been

achieved through growth in loans and

advances, and customer deposits. Net loans

and advances have increased from Kshs 13.04

Billion to KShs 20.87 Billion year on year, a

growth of 60%. Customer deposits increased

from Kshs. 51.3 Billion to Kshs. 55.7 Billion

year-on-year, reflecting a growth of 9%.

The Bank’s liquidity is excellent, at 68.9%,

providing the capacity to lend to customers to

support growth as well as invest in other

profitable opportunities. The high liquidity is

evident from the Kshs. 42.1 billion invested in

Government securities.

The Bank also prudently increased its loan loss

provisions by Kshs 280 Million year on year,

against the backdrop of monitoring legacy

loans acquired.

In the past year, the Kenyan subsidiary’s growth

has seen it increase its total assets by 11%

from Kshs 70.2 Billion in March 2019 to Kshs.

78.1 Billion.

Commenting on the review of the performance

for the first quarter of 2020, the CEO said, “We

are on a steady growth trajectory and anticipate

continued growth by supporting our clients and

finding opportunities within the current

environment. The Bank has a strong capital and

liquidity base to support growth of business

and our digital offering is strong and robust to

support contactless transactions’’.

On the banks continued steady growth since its

entry in the Kenyan market three years ago, , the

Bank’s Chief Executive Officer, Mr. Moezz Mir

said, “We have embarked on a calculated

strategy towards ensuring that we provide

relevant solutions to our client segments in the

Consumer, SME and Corporate arenas.

We provide this through our network of 52

branches spread across the country, and

through our digital offerings. We are also able

to tap into specialist resources and provide

cross-border banking solutions through our

global network, with operations in Mauritius,

India, Madagascar and Seychelles, thereby

effectively serving trade and growth across the

“Indian Ocean Rim”.

Commenting on the business environment

going forward, Mr. Mir noted, “The advent of the

COVID-19 pandemic in March 2020 has

disrupted business operations globally and this

will undeniably affect how we will all do

business going forward. We have put in place

various measures to support our clients and our

colleagues.

In an effort to support our clients through these

turbulent times, we have proceeded to provide

loan restructures and moratoriums from three

months to twelve months, to allow our clients

to effectively manage their cash flows over this

period.

In addition, we are granting temporary facilities

to our customers to support short term cash

flow needs during these difficult times. We are

also proactively supporting industries that are

in the frontline of pandemic management.”

“A majority of our transactions have moved

onto our digital channels, Mfukoni Mobile

Banking, and our online banking solution, in line

with efforts to enhance contactless

transactions and maintain social distancing.”

The Bank has also joined other financial

institutions in contributing to measures to

alleviate the impact of the pandemic on the

vulnerable members of the community.