SBM Bank Kenya CEO Bhartesh Shah. PHOTO/ HANDOUT
SBM Bank Kenya posted a sharp rise in profitability in the first half of 2026, with Profit Before Tax increasing by 171 per cent to Sh548 million as customer deposits climbed to Sh94 billion, reflecting growing confidence in the lender.
The bank said the six-month performance demonstrates continued progress in its strategy to build a stronger, more resilient and customer-focused institution.
Operating profit rose to Sh852 million from the previous year, while net loans and advances increased by 18 per cent to Sh54.1 billion, supporting households and businesses across the country.
SBM Bank also reported a significant improvement in asset quality. Its Gross Non-Performing Loan ratio declined to 17.3 per cent from 32.4 per cent a year earlier.
Total assets grew to Sh109.9 billion, while shareholders' equity strengthened to Sh11.1 billion. The bank said its capital and liquidity remained comfortably above the regulatory requirements set by the Central Bank of Kenya.
Income growth was broad-based during the period. Net interest income rose to Sh2.2 billion, while non-funded income increased by 54 per cent to Sh1.39 billion, driven by higher customer activity and transaction volumes.
Total operating income grew by 35 per cent, outpacing the 12 per cent increase in operating expenses despite continued investment in technology and infrastructure.
The lender attributed the performance to a two-year strategy aimed at strengthening every aspect of its business.
The strategy has focused on improving earnings quality, enhancing customer experience, strengthening the balance sheet and risk profile, and investing in capabilities needed to support long-term growth. It also highlighted sustained profitability, stronger customer confidence, improved asset quality and continued investment in digital banking and customer experience.
SBM Bank Kenya Chief Executive Officer Bhartesh Shah said the results reflect more than just improved earnings.
"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."
Shah said growth in customer deposits was particularly encouraging because it demonstrated customer trust in the institution.
"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."
The bank also continued investing in technology during the first half of the year. It successfully upgraded its core banking platform to Oracle FLEXCUBE 14.8, becoming the first bank globally to implement the version.
According to the bank, the upgrade strengthens system performance, resilience, security and scalability, providing a stronger technology foundation for future innovation.
SBM Bank further expanded customer capabilities through enhanced Mastercard functionality, continued development of the Busara Kids Banking App, growth of the SBM Loyalty Programme and free PesaLink transfers of up to Sh1 million through its Mfukoni mobile and online banking platforms.
Looking ahead, the lender said it will continue expanding 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 strategy remains anchored on disciplined lending, sound governance and financing that creates economic and social value through enterprise growth, employment creation and broader financial inclusion.
Shah said the bank remains focused on strengthening its position in Kenya's banking sector.
"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. 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."
