Mauritius-based SBM Bank Kenya has recorded a drop in its net earnings for the first nine months of this year.
Its net earnings for Q3 dropped by 64 per cent to KSh 646.7 Million at the end of September 30th, 2019 compared to KSh 1.8 Billion posted over a similar period last year.
The size of its balance sheet also shrunk from KSh 75.5 billion in 2018 to KSh 72.6 billion at the end of the nine-month period of this financial year.
Gross non-performing loans declined from KSh 18.6 billion last year to KSh 15.4 billion. This is as SBM Kenya moves to clean up a bad loan book inherited from the defunct Fidelity Bank and Chase Bank Kenya Limited.
Interest on loans and advances increased from KSh 290.6 million last year to KSh 775.4 million at the end of Q3, 2019.
Customer deposits have taken a hit from Sh 53.7 billion last year to Sh 51.3 billion at the end of the third quarter this year.
Three years ago, the Mauritius-based SBM Group announced that it had reached an agreement to acquire a majority stake in troubled Fidelity Bank. The acquisition process was concluded in May 2017 and the bank’s name was changed to SBM Bank (Kenya) Limited.
In April last year, SBM Holdings concluded the acquisition of the majority of assets and liabilities of Chase Bank Kenya Limited, which had been under receivership since April 2016.
SBM Bank Kenya then absorbed all assets and liabilities, together with the 1,300 Chase Bank employees, in about 62 branches.
