Mauritius-based SBM Bank has reported Ksh66 million profit before tax for Q1 2020 attributing it to a growth in customer loans and advances, and increased customer deposits.
The lender increased its total assets by 11 percent from Ksh70.2 billion to 78.1 billion over the same period. Net loans and advances increased from Kshs 13.04 Billion to KShs 20.87 Billion year on year, a growth of 60 percent, whilst customer deposits increased from Kshs. 51.3 Billion to Kshs. 55.7 Billion year-on-year, reflecting a growth of 9 percent.
The Bank’s liquidity stands at 68.9%, providing requisite capacity to lend to customers to support growth as well as invest in other profitable opportunities.
Commenting on the results, the Bank’s Chief Executive Officer, Mr. Moezz Mir said that the bank had embarked on a calculated strategy towards ensuring that it provides relevant solutions to our client segments in the Consumer, SME and Corporate arenas.
Commenting on the business environment that is already taking a massive hit from the novel Coronavirus pandemic, Mr. Mir noted that the advent of COVID-19 pandemic in March 2020 has disrupted business operations in Kenya and will undeniably affect how business environment operates going forward.
“In an effort to support our clients through these turbulent times, we have proceeded to provide loan restructures and moratoriums from three months to twelve months, to allow our clients to effectively manage their cash flows over this period. In addition, we are granting temporary facilities to our customers to support short term cash flow needs during these difficult times. We are also proactively supporting industries that are in the frontline of pandemic management,” he said.
The Bank has moved a majority of its transactions onto its digital channels, in line with efforts to enhance contactless transactions and maintain social distancing.
Mr. Mir expressed confidence in the steady growth trajectory the bank has taken and anticipated continued growth by supporting its clientele and coming up with opportunities within the current environment.
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