SBM Bank Kenya more than doubled its half-year profit as stronger lending, higher customer deposits and improved loan recoveries boosted earnings during the first six months of 2026.
The lender posted a pre-tax profit of Sh548 million for the six months ended June 30, 2026, up by 171 per cent from Sh202 million recorded in the same period last year.
Customer deposits also grew by 24 per cent to Sh94 billion, while net loans and advances increased by 18 per cent to Sh54.1 billion, signalling stronger customer activity and confidence in the bank.
The bank also strengthened its balance sheet, with total assets rising to Sh109.9 billion from Sh105.7 billion at the end of December, while shareholders’ equity increased to Sh11.1 billion. Operating profit almost quadrupled to Sh852 million.
One of the biggest improvements came from the quality of the bank’s loan book. SBM reduced its gross non-performing loan (NPL) ratio to 17.3 per cent, down from 32.4 per cent a year earlier, while gross bad loans fell to Sh9.69 billion from Sh16.84 billion, indicating fewer borrowers were defaulting on their loans.
Speaking during the release of the results in Nairobi on Wednesday, July 22, 2026, SBM Bank Kenya Chief Executive Officer Bhartesh Shah said the performance reflects the success of the bank’s strategy to improve profitability while strengthening its financial position.
“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 and a resilient balance sheet. The first half of 2026 provides further evidence that this strategy is delivering sustainable value,” Shah said.
Shah said the increase in customer deposits reflects growing trust in the lender, adding that maintaining customer confidence remains central to the bank’s long-term strategy.
The bank’s earnings were supported by growth in both interest and fee-based income. Total operating income rose 35 per cent to Sh3.52 billion, helped by a 54 per cent increase in non-funded income to Sh1.39 billion as customer transactions increased. Operating expenses grew by a slower 12 per cent, allowing the bank to improve efficiency despite continued investment in technology and infrastructure.
During the period, SBM completed an upgrade of its core banking system to Oracle FLEXCUBE 14.8, becoming the first bank globally to deploy the latest version.
The bank also expanded its digital services by enhancing Mastercard capabilities, growing the Busara Kids Banking App, strengthening its loyalty programme and continuing to offer free PesaLink transfers of up to Sh1 million through its Mfukoni digital banking platform.
The lender maintained capital and liquidity levels above Central Bank of Kenya regulatory requirements, with a liquidity ratio of 48.5 per cent against the required 20 per cent, while total capital adequacy stood at 15.9 per cent, above the minimum 14.5 per cent.
Looking ahead, Shah said SBM will use its stronger financial position to expand lending to individuals, SMEs, corporates and the trade sector, while increasing financing for climate-resilient and environmentally sustainable projects.
SBM Bank Kenya is part of the Mauritius-based SBM Group and said it will continue focusing on disciplined lending, prudent risk management and digital innovation as it seeks to sustain profitability and deepen its role in supporting Kenya’s economic growth.
– By Daniel Kamau
