•The lender's financials show it maintained a strong liquidity position of 43.2% well above the CBK minimum requirement of 20%.
•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.
SBM Bank Kenya has posted a drop in profits after tax for the nine months of 2022 to Sh197 million.
This is an Sh64 million drop compared to the 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.
In the period under review, the bank held investments in Government securities totaling Sh. 36.7 Billion.
The lender's financials show it maintained a strong liquidity position of 43.2 per cent well above the CBK minimum requirement of 20.0 per cent.
“With the increased growth in the balance sheet, the bank’s interest income from loans and advances to customers increased by 20.5 percent 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 firm's 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 Sh80.9 billion reported in a similar period last year.
The customer deposit balances increased by 2.2 per cent 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 the 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 per cent 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 per cent from Sh1, 272 million in quarter three of 2021 to Sh635 million over the same period in 2022.
This was primarily due to lower bond trading income, as the secondary market-trading environment was unfavourable.