SBM Bank (Kenya) Limited Q1 profit after tax falls to Sh66 million

SBM Bank (Kenya) Ltd first quarter 2020 profits after tax shrunk by 79 per cent compared to a similar period last year to settle at Sh64 million.

The earnings fell from the Sh310 million reported in 2019’s quarter one.

In a statement to investors released yesterday, the lender attributed the drop in profits to an increase in loan loss provisions that went up by Sh280 million, against the backdrop of monitoring legacy loans acquired.

Net loans and advances increased 60 per cent from Sh13.04 billion to Sh20.87 billion in the period under review. Customer deposits rose 9 per cent from Sh51.3 billion to Sh55.7 billion.

The bank’s liquidity stood at 68.9 per cent evident from the Sh42.1 billion invested in government securities.

The bank, which entered the Kenyan market three years ago, saw assets rise 11 per cent from Sh70.2 billion to Sh78.1 billion as of the end of March.

SBM Chief Executive Moezz Mir anticipated growth even within the current environment.

“The bank has a strong capital and liquidity base to support the growth of business and our digital offering is strong and robust to support transactions that do not involve contact,’’ he said.

He added that the bank had proceeded to provide loan restructures and moratoriums from three months to twelve months, to allow its clients to effectively manage their cash flows during the covi-19 period.