SBM BANK KENYA ON STEADY GROWTH
By Douglas Muriithi
It is exactly three years since SBM Bank
(Kenya) Limited entered the Kenyan market in
May 2017. The Bank is owned by SBM Holdings
Ltd based in Mauritius (SBM Group is majority-
owned by the Government of Mauritius and
associated entities).
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.
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.
Commenting on this steady growth, 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”.
As a result of these growth initiatives, the Bank
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 Bank also prudently increased its
loan loss provisions by Kshs 280 Million year
on year, against the backdrop of monitoring
legacy loans acquired.
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.”
Concluding the review of the performance fothe
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’’.
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.
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