SBM Bank Kenya has posted a strong profit before tax of Ksh 246 million for the first quarter of 2026, a sharp jump from Sh12 million recorded in the same period last year, underlining steady progress in its turnaround strategy.
The results show a lender that is now moving beyond recovery into a phase of stable growth, following a difficult period that saw it return to profitability in 2025 after years of losses.
In the three months to March, the bank’s total assets rose to Ksh 109.5 billion from Ksh 102.9 billion a year earlier, while customer deposits increased by 23 per cent to Ksh 89 billion. The growth was driven by a rising customer base and stronger engagement across its banking segments.
The balance sheet remained well spread, with net loans and advances standing at Sh48.5 billion and investments in government securities at Ksh 44 billion, helping the bank manage risk while maintaining steady income flows.
Net interest income came in at Sh1.1 billion, supported by lower funding costs after the bank cut interest expenses by 15 per cent year-on-year. At the same time, non-interest income grew by 55 per cent to Ksh 673 million, reflecting increased use of digital platforms and higher transaction volumes.
Asset quality also improved sharply. Gross non-performing loans dropped by 41 per cent to Ksh 10 billion, with the NPL ratio falling from 33.8 per cent to 19.8 per cent, pointing to tighter credit controls and a cleaner loan book.
Overall operating income rose to Ksh 1.7 billion, while operating expenses increased by 13 per cent, a rise the bank attributes to continued investment in technology and infrastructure needed to support future growth.
Chief Executive Officer Bhartesh Shah said the results are the outcome of deliberate changes made since he took office.
“These results are not an accident. Since I took office, we have reset how the Bank is run through tighter execution, clearer accountability and a relentless focus on customer activity. Q1 shows the payoff: stronger earnings quality, stronger deposits, and a cleaner book,” he said.
He noted that the bank is shifting its model towards everyday transactions rather than relying heavily on lending.
“We are building a different kind of bank in Kenya, a payments-led bank that customers trust for everyday transactions. When you win transactions, you win the relationship and the economics follow,” Shah said.
“To support this, from May 1, we have made PesaLink transfers free to customers, ultimately removing friction and accelerating adoption, and you can already see that direction in our non-funded income growth and digital momentum.”
The lender is also pushing innovation as part of its growth plan. During the quarter, it launched the Busara Banking App, a platform designed to help parents teach children financial discipline through guided saving and spending. The bank says the solution is among the first of its kind in Kenya and across Africa.
Shah said the transformation journey is now entering a new stage focused on scale.
“Our growth is anchored on repeatable drivers such as transactions, deposits, and disciplined risk, while keeping the customer firmly at the centre. By investing in the everyday journeys and innovations our customers rely on, we are building performance that is both resilient and sustainable,” he said.
The bank maintained strong financial buffers, with core capital at Ksh 7.8 billion and a liquidity ratio of 50.4 per cent, well above regulatory requirements, giving it room to support future expansion.
With its balance sheet stabilised and customer activity rising, SBM Bank Kenya is now betting on digital payments, transaction banking and innovation to drive its next phase of growth in Kenya’s competitive banking sector.
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