State Bank of Mauritius (SBM Bank) on Thursday announced plans to close five of its branches in Kenya citing proximity to client locations.
The bank, through a statement, said the review of branch distribution is necessary to rationalize its potential client activity and other related services required.
Its branches in Ngara branch, Dagoretti Express, Lunga Lunga Branch and Jomvu Express will be closed on December 12. The Moi Avenue Branch in Mombasa will also be closed on December 30.
SB Bank entered the Kenyan market in May 2017 through acquisition.
When SBM entered the Kenyan market it acquired Fidelity bank at Sh100 cash consideration (and Sh1.2 billion goodwill). It also took over Chase Bank’s at Sh500,000 cash consideration inheriting Sh70 billion assets, Sh67 billion liabilities, over 60 branches and over 1000 employees.
The COVID-19 pandemic has worsened the recovery of a bank that tried to salvage two from collapsing.
“Account holders in these branches will continue to enjoy uninterrupted services through the alternative branches,” SBM bank said in the statement.
The bank is owned by SBM Holdings Ltd based in Mauritius (SBM Group-majority owned by the government of Mauritius and associated entities).
In May this year, SBM Bank (Kenya) Limited reported a Sh66 million profit before tax for the first quarter of 2020 amid a 7.7 per cent increase in operating income year-on-year.
The growth in business was largely achieved through growth in loans and advances and customer deposits, the lender said.
Net loans and advances increased from Sh13.04 billion to Sh20.87 billion year-on-year, a growth of 60 per cent.
Customer deposits increased to Sh55.7 billion from Sh51.3 billion, reflecting a growth of nine per cent, as the lender affirms steady business three years into its operations in Kenya.
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