Africa-Press – Kenya. SBM Bank Kenya has posted a drop in profits after tax for the nine months of -2022 to Sh197 million.
This is a Sh64 million drop compared to Sh261 million 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.
The results come at a time that the Mauritian bank group SBM Holdings wants to sell its Kenyan subsidiary five years after entering the market through the buyout of Fidelity Bank.
In the period under review, the bank held investments in Government securities totalling to Sh. 36.7 Billion.
The lenders financials shows that the bank maintained a strong liquidity position of 43.2percent well above the CBK minimum requirement of 20.0percent.
“With the increased growth in the balance sheet, the Bank’s interest income from loans and advances to customers increased by 20.5percent year on year from Sh. 1.82 Billion in Q3’2021 to Sh. 2.19 Billion in Q3 ‘2022,” SBM said in its financials.
The firms third quarter results show that its net loans and advances increased year on year by 30 percent from Sh. 27.9 billion in third quarter last year to Sh36.3 billion over the same period in 2022 supported by increased lending to its customers.
The bank reported a total asset position of Sh. 82.3 billion as of September 30, 2022, a 1.7 percent increase compared to the Sh80.9billion reported in a similar period last year.
The customer deposit balances increased by 2.2 percent from Sh. 54.3 billion in the third quarter of 2021 to Sh55.5 billion over the same period in 2022 supported by growth in the customer base and an increase in transaction volumes.
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 percent from Sh320 million earned in third quarter of 2021 to Sh488 million earned over the same period in 2022.
Fees and commissions from loans and advances increased year on year by 13.1 percent from Sh115.2 million in quarter three of 2021 to Sh130.3 million over the same period in 2022.
Other fee and commission income recorded an increase of 17.6 percent year on year from Sh170 million in the third quarter of 2021 to Sh200 million during the period under review in 2022.
Other income declined year on year by 50.1 percent from Sh1, 272 million in quarter three in 2021 to Sh635 million over the same period in 2022 primarily due to lower bond trading income, as the secondary market-trading environment was unfavourable.
For More News And Analysis About Kenya Follow Africa-Press
