SBM Bank Kenya records Ksh.246 million pre-tax profit

The improved performance reflects strengthening fundamentals, with customer deposits rising 23 per cent year-on-year to Ksh.89.0 billion, supported by growth in the bank’s customer base and increased account activity. Total assets also grew to Ksh. 109.5 billion from Ksh.102.9 billion a year earlier.

Net interest income stood at Ksh.1.1 billion, boosted by lower funding costs as interest expenses declined by 15 per cent. Non-interest income outpaced this growth, increasing by 55 per cent to Ksh.673 million, driven largely by higher transaction volumes across digital and payments platforms.

Asset quality improved significantly during the period, with gross non-performing loans falling 41 per cent to Ksh.10.0 billion. This saw the bank’s NPL ratio decline to 19.8 per cent from 33.8 per cent in Q1 2025, although it remains above industry averages.

Overall operating income rose to Ksh. 1.7 billion, while operating expenses increased by 13 per cent, reflecting continued investment in technology alongside cost management efforts.

Chief Executive Officer Bhartesh Shah attributed the performance to stronger execution and a strategic shift toward transaction-driven banking, with increased focus on digital payments and everyday banking activity.

During the quarter, the bank launched the Busara Banking App aimed at promoting financial literacy and money management, particularly among families and children. It also waived charges on PesaLink transfers effective May 1, in a bid to encourage greater adoption of instant payment channels.

SBM Bank Kenya maintained a strong liquidity position, posting a liquidity ratio of 50.4 per cent, well above regulatory requirements, alongside core capital of Ksh.7.8 billion.

Looking ahead, the lender says it will continue investing in digital infrastructure and payments to sustain transaction growth, deepen its deposit base, and further improve asset quality.

SBM Bank Kenya, part of the Mauritius-based SBM Group, has been operating in the Kenyan market since 2017, serving retail, SME and corporate clients through a network of more than 30 branches and digital platforms.