SBM Bank Kenya stages sharp turnaround as operating profit swings Sh2.6B

SBM Bank (Kenya) Limited has reported a strong financial turnaround for the year ended 31 December 2025, delivering a profit before tax of Sh614 million, compared with a loss of Sh1.6 billion in FY2024, as the bank’s transformation strategy translated into a sharp improvement in operating performance.

At the core of this recovery was a dramatic turnaround in operating performance, with operating profit swinging from a loss of Sh1.8 billion in FY2024 to a profit of Sh780 million in FY2025, reflecting the impact of disciplined execution across the organisation.

Over the past two years, under the leadership of Chief Executive Officer Bhartesh Shah, SBM Bank Kenya has undertaken a rigorous transformation focused on restoring operational stability, rebuilding customer confidence, and strengthening the balance sheet while investing in modern digital payments infrastructure.

With the bank’s foundations now stabilised and customer engagement strengthening, SBM is entering its next phase of growth focused on scaling its digital payments ecosystem and deepening relationships across the affluent, SME, and corporate segments.

A key driver of this success has been the restoration of trust through stable systems and enhanced digital capabilities, which have enabled customers to transact more easily and confidently.

These improvements directly translated into strong growth in customer activity, with total customer deposits increasing 20% year-on-year to Sh82.4 billion.

Growth was particularly robust in current and savings accounts (CASA) as customers increasingly utilised the bank’s payments and digital platforms for everyday transactions.

Consequently, non-interest income increased by 24% to Sh2.1 billion, supported by higher transaction volumes across digital channels, trade finance services, and card-based payments.

Combined with a substantial 81% increase in net interest income, total operating income rose 55% toSh6.0 billion.

Even as the bank invested significantly in upgrading its technology infrastructure, operating costs remained tightly controlled, with total operating expenses remaining flat at Sh5.4 billion due to disciplined management.

This fiscal prudence was matched by a significant improvement in asset quality, as gross non-performing loans declined by 34% to Sh11.3 billion, down from Sh17.1 billion in FY2024.

This brought the NPL ratio down from 33.2% to 22.5%. The bank concludes the year on a solid regulatory footing, with core capital standing at Sh7.7 billion, well above the Central Bank of Kenya’s minimum requirement, and a liquidity ratio of 47.6%, which significantly exceeds regulatory mandates.

Commenting on the results, Bhartesh Shah, Chief Executive Officer of SBM Bank Kenya, said:

With a stronger balance sheet, improving asset quality and growing customer engagement, SBM Bank Kenya is well positioned to continue expanding its payments ecosystem.

The bank has accelerated its investment in technology, payments infrastructure and customer-focused innovation as it builds a modern banking franchise.

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