Home News Business SBM Bank posts 30% growth in net loans and advances

SBM Bank posts 30% growth in net loans and advances

[SBM Bank (Kenya) Ltd Chief Operating Officer Amrit Gayan (left) receives the ‘Finnovator of the year’ award from Microsoft Client Technology Lead-Financial Services Wole Odeleye during the Finnovex East Africa Awards 2022 awarding ceremony at Villa Rosa Kempinski Nairobi. Photo/Ahmed Omar/April, 27 2022].

SBM Bank Kenya Limited’s net loans and advances increased year on year by 30% from KSh.27.9 billion in Q3’2021 to KSh.36.3 billion in Q3’2022 supported by increased lending to its customers.

The bank reported a total asset position of Kshs.82.3 billion as of 30 September 2022, a 1.7% increase compared to the KShs.80.9 billion reported in a similar period last year.

The customer deposit balances increased by 2.2% from KSh.54.3 billion in Q3’2021 to KSh.55.5 billion in Q3’2022 supported by growth in the customer base and an increase in transaction volumes.

In the period under review, the Bank held investments in government securities totalling to Ksh.36.7 billion. In this regard, the bank maintained a strong liquidity position of 43.2% well above the CBK minimum requirement of 20.0%.

With the increased growth in the balance sheet, the Bank’s interest income from loans and advances to customers increased by 20.5% year on year from KSh. 1.82 billion in Q3’2021 to KSh.2.19 billion in Q3 ‘2022.

The Bank’s fee and commission income from all its channels increased year on year driven by growth in transaction volumes.

Foreign exchange income recorded a year-on-year increase of 52.5% from KSh. 320 million earned in Q3 ‘2021 to KSh. 488 million earned in Q3’2022.

Fees and commissions from loans and advances increased year on year by 13.1% from KSh. 115.2 million in Q3’2021 to KSh.130.3 million in Q3’2022.

Other fee and commission income recorded an increase of 17.6% from KSh. 170 million in Q3 ‘2021 to KSh. 200 million in Q3’2022.

Other income declined year on year by 50.1% from KSh. 1,272 million in Q3 ‘2021 to KSh. 635 million in Q3 2022 primarily due to lower bond trading income as the secondary market trading environment was unfavourable.

SBM reported a profit after tax of KSh.197 million for the 9 months of 2022 compared to KSh. 261 million were reported the previous year.

The drop was primarily a result of lower income on bond trading income owing to the low activity in the secondary market.

SBM Bank Kenya is a wholly owned subsidiary of SBM Group Holdings, which was established in Mauritius in 1973, and is listed on the Stock Exchange of Mauritius. In addition to Mauritius and Kenya, the Group also has operations in India and Madagascar. SBM Group Holdings has a total asset size of approximately KSh.1.0 Trillion (USD 8.2 billion) (Q3 2022).