SBM Bank posts Sh412m profit for Q3 against Sh1.3bn loss last year

SBM Bank Kenya Limited CEO Bhartesh Shah /HANDOUT

SBM Bank Kenya Limited has posted a Sh283.4 million profit after tax for the nine months ended September 30, a turnaround from a Sh1.3 billion loss reported during the same period last year.

The wholly owned subsidiary of Mauritian lender–SBM Group Holdings had a profit before tax of Sh412 million during the nine months, marking a continued rebound in performance as the lender reaped from investment in digital platforms and collaborations with fintechs.

During the period under review, operating income went up 65 per cent to Sh4.3 billion from Sh2.6 billion, as operating expenses declined by 3.5 per cent, demonstrating prudent cost management and enhanced operational efficiency.

This is on the back of growth in customer deposits, which closed the third quarter at Sh3.7 billion compared to Sh3.5 billion same period last year, reflecting the bank’s continued focus on building deeper customer relationships and serving the evolving needs of its retail, mass affluent and business clients.

Loans and advances to customers closed the period at Sh4.4 billion.

The Bank, which started operations in Kenya in 2017 after the acquisition of Fidelity Commercial Bank by SBM Holdings Limited and subsequent rebranding, before an acquisition of certain assets and liabilities of Chase Bank (Kenya) Limited (In Receivership) in 2018, saw its total assets grow to Sh104.0 billion, up from Sh97.5 billion.

According to management, the strong Q3 performance has been supported by a clear focus on product innovation, digitisation and partnerships.

“Our performance this quarter reflects the disciplined execution of our turnaround strategy and the power of customer-led innovation. Through smarter digital platforms, relevant products, and strong partnerships, we deliver a bold, secure, and modern banking experience. We remain committed to driving inclusive financial growth and becoming Kenya’s preferred payments and savings bank,” CEO Bhartesh Shah said.

During the quarter, the bank also strengthened its partnership with Mastercard, expanding card issuance and payment capabilities and continued to scale real-time interbank transfers through PesaLink, reinforcing its ambition to be Kenya’s preferred payments bank.

In the investment space, SBM recorded positive customer response to the platinum saver account, which offers returns of nine per cent in Kenyan shillings and four per cent in US dollars, and continued momentum on the fractional Eurobond offering via its Custodial and Fixed Income desk.

The Jijenge Biashara product, which allows MSMEs to borrow up to twice their savings, continued to grow in uptake, supporting business resilience and access to capital.

The bank’s capital strength remains robust, with a core capital of Sh7.7 billion—well above the new CBK minimum of Sh3billion required by the end of 2025.

Its capital adequacy ratio stood at 15.2 per cent, against a regulatory minimum of 14.5 per cent, while liquidity stood at 42.9 per cent, far exceeding the 20 per cent statutory requirement.