National Bank eyeing SMEs for expansion

By Standard Reporter

Kenya: National Bank has launched a business club as it seeks to strengthen its foothold in the small and medium enterprise (SME) sector.

Through the National Business Club, the bank intends to widen opportunities for its business customers by offering members such benefits as access to workshop trainings on entrepreneurship, networking opportunities, business advisory services and business trips to tap into new and emerging markets.

Managing Director Munir Sheikh Ahmed said the launch of the business club was a wider strategy by the bank to tap into the growing SME sector. “As a bank, we see our SME clients as partners in business who deserve the best in terms of availing opportunities to help them grow with us,” he said during the launch.

Indigenous business

Mr Ahmed noted that the unveiling of the National Bank Business Club complements the institution’s core mission of assisting indigenous businesses to realise their dreams.

He said the bank was keen on empowering its business customers by giving them necessary exposure and networking opportunities.

National Bank recorded a profit before tax of Sh1.81 billion for the year ending December 31, 2013, up from Sh1.16 billion in 2012, representing a 57 per cent growth.

The earnings were mainly buoyed by the growth of its loan book from Sh29.70 billion in 2012 to Sh47.85 billion in 2013 billion fuelled by increased lending to SME borrowers.

Ahmed observed that most SMEs face capacity challenges either in terms of technical knowledge on how businesses operate or funding and cash flow constraints.

“Our club members will be able to benefit from expert business advice and financial management through seminars and workshops, external trade facilitation, preferential interest rates and exposure to global best practice through business trips abroad,” Ahmed pointed out in a statement.

Last month, the bank sponsored about 60 businessmen and women for a 10-day business trip to China to expose and educate them in new business ideas from one of the World’s fastest growing economy. They visited Hong Kong, Sheng Zen, Guangzhou and Yiwu.

The bank aims to enlist entrepreneurs who sign up for the business club to grow its customer base. Membership will be automatic once one opens a business club account.

Last year, the bank re-branded itself as part of a new strategy aimed at transforming it into one of the top tier banks in the country by 2017 and grow its turnover to Sh31 billion during the same period through an expanding balance sheet, larger market footprint, better managed risks and streamlined costs.