SBM Bank Kenya returned to profit in 2025, posting a KSh 613.96 million profit before tax for the year ended 31 December, marking a remarkable turnaround from the KSh 1.6 billion loss recorded in 2024. After tax, the bank recorded a KSh 444.22 million profit, compared with a KSh 1.21 billion loss the prior year.
The bank’s impressive performance was driven by substantial growth in its core revenue streams, increased digitization and prudent cost management. The shift from an operating loss of KSh 1.8 billion in 2024 to an operating profit of KSh 780 million in 2025 captures the scale of the change.
The core driver was a 19.6% decline in total interest expense, which fell to KSh 6.86 billion from KSh 8.53 billion. Customer deposits rose 20% to KSh 82.41 billion — growth concentrated in current and savings accounts tied to increased use of digital and payments channels. As the deposit base expanded, reliance on costly interbank funding fell. Interest paid to other banking institutions dropped from KSh 3.37 billion to KSh 1.89 billion.
Net interest income climbed 80.7% to KSh 3.88 billion. Total operating income rose 55% to KSh 5.99 billion. Non-interest income grew 24% to KSh 2.11 billion, supported by digital platform volumes, trade finance, and card payments. Operating expenses held at KSh 5.37 billion — down 1.4% — despite increased technology investment. The loan loss provision fell 26.4% to KSh 314.34 million as credit quality improved.
Gross non-performing loans fell 34% to KSh 11.3 billion from KSh 17.1 billion. The NPL ratio dropped to 22.5% from 33.2%. The improvement is material, though the ratio remains among the higher readings in Kenya’s mid-tier banking segment.
Total assets grew 5.5% to KSh 105.72 billion. Core capital stood at KSh 7.7 billion, above the Central Bank of Kenya’s minimum of KSh 3.0 billion. The total capital adequacy ratio reached 15.0% against the 14.5% statutory floor. The liquidity ratio of 47.6% sat at more than double the 20% regulatory requirement.
Chief Executive Officer Bharath Shah attributed the results to restructuring and operational work carried out over the preceding two years.
“Our 2025 performance marks an important milestone in SBM Bank Kenya’s transformation journey,” Shah said. “We have moved from stabilisation to sustainable growth, strengthening our balance sheet while investing in innovation that improves how customers transact and manage their finances.”
This return to profitability by SBM bank is a welcome development for a bank that spent the entirety of the previous year in red, ultimately closing with a net loss of KES 1.07 billion. That loss was largely due to a decrease in net interest income, as interest expenses had risen at a faster pace than income. During that challenging period, the bank’s parent company, SBM Holdings, provided a capital injection of KES 471 million to support its operations.
SBM Holdings’ entry into the Kenyan market began in May 2017 with the acquisition of Fidelity Commercial Bank for a nominal sum, followed by a USD 20 million capital injection. The group further expanded in August 2018 by acquiring certain assets and liabilities of the then-under receivership Chase Bank Kenya, committing to inject an additional USD 60 million to bolster the venture.
To secure its future growth, SBM Bank Kenya has been strategically shifting its focus towards serving affluent and entrepreneurial clients through new product launches and investments in digital platforms. The bank has also entered into several strategic collaborations with fintech and ecosystem partners to enhance the capabilities of its payment solutions.
