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 financing to individuals, small and medium-sized enterprises, corporates and trade while increasing support for climate-resilient and environmentally sustainable investments.
The bank said its lending strategy will continue to emphasise disciplined credit underwriting, sound governance and financing that contributes to enterprise growth, job creation and broader financial inclusion.
Shah said the bank’s ambition is to become one of Kenya’s most trusted financial institutions by combining financial strength with innovation and responsive customer service.
“Our ambition is to build one of Kenya’s most trusted and responsive banks, combining financial strength with speed of execution, disciplined governance with innovation, and international capability with deep local understanding,” he said. “We are building an institution that customers can rely on, employees are proud to serve, shareholders can invest in with confidence and which plays an increasingly important role in Kenya’s economic development.”
SBM Bank Kenya is part of the SBM Group, whose parent company, SBM Holdings Ltd, is listed on the Stock Exchange of Mauritius. The bank said the group’s institutional backing, coupled with its improving profitability, stronger capital position and enhanced asset quality, provides a solid platform for sustainable growth in Kenya’s banking sector.