SBM Bank records 30pc jump in loans and advances

SBM Bank branch along Kaunda Street, Nairobi, November 19, 2022. [Elvis Ogina, Standard]

SBM Bank Kenya has reported a 30 per cent increase in loans and advances for the third quarter ending September 30, 2022 compared to a similar period last year.

Net loans and advances rose to Sh36.3 billion in the third quarter from Sh27.9 billion in quarter three of last year. The bank reported a total asset position of Sh82.3 billion as of September 30 this year, a 1.7 per cent increase from Sh80.9 billion reported in a similar period last year.

However, net profit for the nine months dropped to Sh197 million from Sh261 million in a similar period last year. The drop, the lender said, was on the back of lower income from bond trading 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. It is listed on the Stock Exchange of Mauritius.

The customer deposit balances increased by 2.2 per cent from Sh54.3 billion in quarter three of last year to Sh55.5 billion in a similar period this year, supported by growth in the customer base and an increase in transaction volumes.

Strong liquidity

In the period under review, SBM’s investment in government securities stood at Sh36.7 billion.

“In this regard, the bank maintained a strong liquidity position of 43.2 per cent, well above the CBK’s (Central Bank of Kenya’s) minimum requirement of 20.0 per cent,” said the lender in a statement. With the increased growth in the balance sheet, the bank’s interest income from loans and advances to customers increased by 20.5 per cent year-on-year from Sh1.82 billion in quarter three of last year to Sh2.19 billion this year.

Fees 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 per cent from Sh320 million earned in quarter three of last year to Sh488 million this year. Fees and commissions from loans and advances, increased by 13.1 per cent from Sh115.2 million in 2021 to Sh130.3 million this year.