SBM Bank Kenya returns to profit with Ksh.614M in FY2025

The improvement was driven by a turnaround in operating performance, with the bank recording operating profit of Ksh.780 million in 2025, compared with an operating loss of Ksh.1.8 billion a year earlier.

According to Chief Executive Officer Bhartesh Shah, the recovery follows a restructuring and operational stabilisation effort undertaken over the past two years. Shah said the results reflected progress in stabilising operations and strengthening the bank’s financial position.

“Our 2025 performance marks an important milestone in SBM Bank Kenya’s transformation journey. We have moved from stabilization to sustainable growth, strengthening our balance sheet while investing in innovation that improves how customers transact and manage their finances,” said Shah.

Customer activity increased during the year, with total deposits rising 20 per cent to Ksh.82.4 billion. Growth was largely driven by higher balances in current and savings accounts as customers increased use of the bank’s payments and digital channels.

Non-interest income grew 24 per cent to Ksh.2.1 billion, supported by higher transaction volumes across digital platforms, trade finance services and card payments. Net interest income also rose significantly, contributing to a 55 per cent increase in total operating income to Ksh.6.0 billion.

Operating expenses remained largely unchanged at Ksh.5.4 billion despite increased investment in technology and systems.

Asset quality improved during the period, with gross non-performing loans declining 34 per cent to KSh 11.3 billion from Ksh.17.1 billion in FY2024. As a result, the bank’s non-performing loan ratio fell to 22.5 per cent from 33.2 per cent the previous year.

The bank ended the year with core capital of Ksh.7.7 billion, above the minimum requirement set by the Central Bank of Kenya, and a liquidity ratio of 47.6 per cent.