SBM Bank Kenya posts Ksh.548M half-year profit as earnings surge 171%

The lender said operating profit rose by 279 per cent to KSh852 million during the six months ended June 30, 2026, while customer deposits increased by 24 per cent to KSh94 billion.

Net loans and advances grew by 18 per cent to KSh54.1 billion, with total assets rising to KSh109.9 billion. Shareholders' equity stood at KSh11.1 billion, while capital and liquidity levels remained above the Central Bank of Kenya's regulatory requirements.

The bank also reported a significant improvement in asset quality, with its gross non-performing loan (NPL) ratio declining to 17.3 per cent from 32.4 per cent a year earlier.

Net interest income increased to KSh2.2 billion, while non-funded income rose by 54 per cent to KSh1.39 billion, driven by higher customer transaction volumes. Total operating income grew by 35 per cent, outpacing the 12 per cent increase in operating expenses.

SBM Bank Kenya Chief Executive Officer Bhartesh Shah attributed the performance to the bank's strategy of strengthening its balance sheet, improving risk management and investing in customer-focused services.

"These results are about far more than stronger profitability. They demonstrate the continued strengthening of our institution. Over the past two years, we have deliberately focused on building a bank with higher-quality earnings, disciplined risk management, a resilient balance sheet and the agility to respond quickly to our customers' evolving needs," Shah said.

He said the continued growth in customer deposits reflected increasing customer confidence in the lender's financial position and governance.

During the review period, the bank upgraded its core banking system to Oracle FLEXCUBE 14.8, saying it became the first bank globally to implement the platform. It also expanded digital banking services, including enhanced Mastercard functionality, improvements to the Busara Kids Banking App, growth of its loyalty programme and free PesaLink transfers of up to KSh1 million through its Mfukoni digital banking platforms.

SBM Bank Kenya said it plans to continue expanding lending to individuals, small and medium-sized enterprises, corporates and trade, while increasing financing for climate-resilient and sustainable investments.