SBM Bank Kenya Reports Profit Turnaround, Posts KSh 614 Million Before Tax in FY2025

SBM Bank Kenya recorded a major financial turnaround in the year ended 31 December 2025, posting a profit before tax of KSh 614 million, compared with a loss of KSh 1.6 billion in FY2024.

The improvement was driven by a transformation strategy that boosted operating performance and strengthened the bank’s balance sheet. Operating profit swung from a KSh 1.8 billion loss in FY2024 to a KSh 780 million gain in FY2025.

Under the leadership of Chief Executive Officer Bhartesh Shah, the bank has focused on stabilizing operations, restoring customer trust, and modernizing its digital payments infrastructure.

“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 Deposits and Digital Engagement Drive Growth

The bank’s recovery was underpinned by a 20% increase in total customer deposits to KSh 82.4 billion. Growth was particularly strong in current and savings accounts (CASA), as clients increasingly relied on SBM Bank Kenya’s digital and payment platforms for daily transactions.

Non-interest income rose 24% to KSh 2.1 billion, supported by higher transaction volumes across digital channels, trade finance, and card-based payments. Net interest income grew 81%, lifting total operating income 55% to KSh 6.0 billion.

Cost Control and Asset Quality Improvement

Despite significant technology and infrastructure investments, SBM Bank Kenya maintained flat operating expenses at KSh 5.4 billion. Asset quality improved markedly, with gross non-performing loans falling 34% to KSh 11.3 billion, bringing the NPL ratio down to 22.5% from 33.2% in FY2024.

The bank ended the year with a core capital of KSh 7.7 billion and a liquidity ratio of 47.6%, comfortably above Central Bank of Kenya requirements.

Scaling Digital Payments

SBM Bank Kenya plans to build on its stabilized foundations by expanding its digital payments ecosystem and deepening relationships across the affluent, SME, and corporate segments.

Investments in technology and customer-focused innovations are expected to further enhance engagement and transaction volumes.

Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.