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Wednesday, January 27, 2021

SBM Bank Q1 Profit Hits Sh66 Million

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BT Correspondenthttp://www.businesstoday.co.ke
editor [at] businesstoday.co.ke

SBM Bank has reported a 7.7% increase in operating income year-on-year, resulting to a profit before tax of Ksh66 Million for the first quarter of 2020.

The improved business is attributable to growth in loans and advances and customer deposits.

Net loans and advances have increased from Ksh13.04 billion to Kshs 20.87 billion year on year, a growth of 60%.  

Customer deposits increased from Ksh51.3 billion to Ksh55.7 billion year-on-year, reflecting a growth of 9%.

The Bank also increased its loan loss provisions by Ksh280 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 Ksh78.1 Billion.

Commenting on the financial results, SBM Bank Kenya CEO Moezz Mir said the bank is on a steady growth trajectory and anticipates continued growth by finding opportunities within the current environment

“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,” he added.

“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.

See Also>>> KCB Restructures Sh115 Billion Worth of Loans in Three Months

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