SBM bank to shut 5 branches in Kenya

Image: Kenyan Wallstreet

KENYA – SBM Bank Kenya, a subsidiary of State Bank of Mauritius (SBM), has announced that it will close five of its Kenya branches in December as the bank reviews its branch network “in light of proximity to their client locations and their other flagship branches”.

SBM announced the move in a notice on November 12, closing Ngara, Dagoretti Express, Lunga Lunga Branch, Jomvu Express, and Mombasa Moi Avenue Branch.

According to the bank notice, the review is necessary to rationalize their presence in different locations in line with current and potential client activity on one hand, and on the other hand the related services required.

Ngara, Dagoretti Express, Lunga Lunga, and Jomvu Express branches will close effective December 12, 2020, while Mombasa Moi Avenue will close its doors on December 30, 2020.

The account-holders in the affected branches will access services in alternative branches at Kimathi, Kilimani, Donholm, and Jubilee branch in Mombasa.

In July, another Kenyan bank NCBA closed 14 branches, eight belonging to NIC and six to CBA, before the merger, in an effort to cut costs as COVID-19 restrictions reduced business activity.

 In June 2020, SBM bank saw its net earnings drop significantly in the first three months of this year to US$582,000 compared US$2.8 million in Q1, 2019.

This is as the lender made huge provisions for loan losses from US$1.9 million in Q1, 2019 to US$2.8 million over the first three months of this year.

The Mauritian Bank made its entry into Kenya three years ago.

SBM Bank Kenya recorded an 11 percent increase in the size of its balance sheet from US$641 million in March 2019 to US$714 million in Q1, 2020.

The Bank has a strong liquidity position at 68.9%, providing the capacity to lend to customers to support growth as well as invest in other profitable opportunities.

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