SBM BANK KENYA ON STEADY GROWTH

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.