SBM Bank Kenya, a subsidiary of SBM Holdings Limited-based in Mauritius, saw its net earnings drop significantly in the first three months of this year to KSh 63.6 Million. This is compared to KSh 311 million in Q1, 2019.
This is as the lender made huge provisions for loan losses from KSh 21.1 Million in Q1, 2019 to KSh 301.2 Million over the first three months of this year.
The Mauritian Bank made its entry into Kenya three years ago. SBM Bank Kenya recorded an 11 percent increase in the size of its balance sheet from KSh 70.2 Billion in March 2019 to KSh. 78.1 Billion in Q1, 2020.
Net loans and advances increased from KSh 13 Billion to KSh 20.9 Billion while Customer deposits increased from KSh 51.3 Billion to KSh 55.7 Billion, a growth of 9%.
The Bank has a strong liquidity position at 68.9%, providing the capacity to lend to customers to support growth as well as invest in other profitable opportunities.
“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,” said Mr. Moezz Mir, SBM Bank Chief Executive.
SBM Bank Kenya has a network of 52 branches spread across Kenya and through its digital channels. It leverages on its international networks in Mauritius, India, Madagascar and Seychelles, to provide cross border financial solutions across the “Indian Ocean Rim”.
“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,” said Mir.
The lender will provide loan restructures and moratoriums from three months to twelve months, to allow our clients to effectively manage their cash flows over the COVID-19 period.
In addition, SBM Bank is granting temporary facilities to its customers to support short term cash flow needs during these difficult periods.
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