SBM Bank Kenya Posts 171% Jump in Half-Year Profit as Deposits Hit Sh94 Billion
SBM Bank Kenya’s profit before tax rose by 171.3 percent to KSh548 million for the first half of 2026.
The bank’s results for the six months ended June 30, 2026, also showed operating profit nearly quadrupling to KSh852 million, while customer deposits grew by 24 percent to KSh94 billion. Net loans and advances increased by 18 percent to KSh54.1 billion, reflecting continued lending to households and businesses across the country.
A key highlight of the results was a significant improvement in asset quality, with the gross non-performing loan (NPL) ratio falling to 17.3 percent from 32.4 percent recorded during the same period last year. Total assets rose to KSh109.9 billion, while shareholders’ equity strengthened to KSh11.1 billion, with capital and liquidity levels remaining comfortably above regulatory requirements set by the Central Bank of Kenya.
The lender attributed the performance to broad-based income growth, with net interest income increasing to KSh2.2 billion and non-funded income rising by 54 percent to KSh1.39 billion, supported by increased customer activity and transaction volumes. Overall operating income expanded by 35 percent, significantly outpacing the 12 percent growth in operating expenses despite continued investment in technology and infrastructure.
SBM Bank Kenya Chief Executive Officer Bhartesh Shah said the results reflected more than improved profitability, describing them as evidence that the bank’s long-term transformation strategy is bearing fruit.
“These results are about far more than stronger profitability. They demonstrate the continued strengthening of our institution,” Shah said.
“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. The first half of 2026 provides further evidence that this strategy is delivering sustainable value.”
He noted that the sustained growth in customer deposits demonstrates increasing trust in the bank’s financial strength and governance.
“The continued growth in customer deposits is particularly encouraging because it reflects trust. Customers choose banks they believe are financially strong, well governed and committed to supporting them over the long term. Preserving and strengthening that confidence remains at the centre of every decision we make,” Shah added.
The lender said its financial performance is the latest milestone in a two-year strategy focused on improving earnings quality, strengthening the balance sheet, enhancing customer experience and investing in long-term growth capabilities. During the period, customer deposits have increased by about 66 percent over the past two years, while the bank has significantly reduced its stock of non-performing loans.
Technology investment remained a major priority during the first half of the year. SBM Bank Kenya became the first bank globally to successfully deploy Oracle FLEXCUBE 14.8, a core banking platform expected to improve system performance, resilience, security and scalability.
The bank also enhanced its Mastercard offerings, continued developing the Busara Kids Banking App, expanded the SBM Loyalty Programme and maintained free PesaLink transfers of up to KSh1 million through its Mfukoni mobile and online banking platforms. According to the bank, these investments are intended to strengthen customer experience while supporting future innovation and sustainable growth.
Looking ahead, SBM Bank Kenya said it will leverage its stronger financial position to expand responsible financ