SBM Bank (Kenya) Limited on a steady growth trajectory

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 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’’.

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.