SBM Bank Posts 30% Growth in Net Loans and Advances

SBM Bank Kenya Limited’s net loans and advances increased year on year by 30% from KShs. 27.9 Billion in Q3’2021 to KShs. 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 30September 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 KShs. 54.3 Billion in Q3’2021 to KShs. 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 Kshs. 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 KShs. 1.82 Billion in Q3’2021 to KShs. 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 KShs. 320 Million earned in Q3 ‘2021 to KShs. 488 Million earned in Q3’2022. Fees and commissions from loans and advances increased year on year by 13.1% from KShs. 115.2 Million in Q3’2021 to KShs. 130.3 Million in Q3’2022. Other fee and commission income recorded an increase of 17.6% year on year from KShs. 170 Million in Q3 ‘2021 to KShs. 200 Million in Q3’2022. Other income declined year on year by 50.1% from KShs. 1,272 Million in Q3 ‘2021 to KShs. 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 KShs. 197 Million for the nine months of 2022 compared to KShs. 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 KShs. 1.0 Trillion (USD 8.2 billion) (Q3 2022).