SBM Bank Kenya's profit jumps 171pc as deposits near Sh100b

SBM Bank Kenya has reported a 171 per cent growth in profit before tax to Sh548 million over the first half to June 2026, up from Sh202 million in the same period last year. The bank credited its profitability to strong revenue growth and a thorough balance sheet strengthening. The bank said its operating profit registered an almost four-fold increase to Sh852 million.

Net loans and advances increased by 18 per cent to Sh54.1 billion, which it attributed to higher lending to households and businesses across Kenya.

The gross non-performing loan ratio improved to 17.3 per cent from 32.4 per cent a year earlier.

“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, 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,” said SBM Bank Kenya Chief Executive Bhartesh Shah.

The bank’s operating expenses grew by 12 per cent, generating strong positive operating leverage despite continued investment in technology and infrastructure, while its operating income grew by 35 per cent over the half.

Net interest income increased to Sh2.2 billion, while non-funded income grew by 54 per cent to Sh1.39 billion, driven by higher customer activity and transaction volumes.

Customer deposits increased by 23 per cent year over year to Sh94 billion, translating into a 66 per cent rise over two years.

“The continued growth in customer deposits is particularly encouraging because it reflects trust," said Shah.

"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.”

The bank also said it had made significant investments to update its digital banking as it sought to simplify banking for its customers.