SMB Bank Kenya has posted a Sh444.2 million net profit for the year ended December 31, 2025, marking a significant turnaround from a Sh1.2 billion net loss reported the previous year.
The lender, which is a subsidiary of Mauritius headquartered—SBM Group delivered a profit before tax of Sh614 million, compared with a loss of Sh1.6 billion in financial year 2024.
This, as the bank’s transformation strategy translated into a sharp improvement in operating performance.
At the core of this recovery was a dramatic turnaround in operating performance, with operating profit swinging from a loss of Sh1.8 billion in 2024 to a profit of Sh780 million in 2025, reflecting the impact of disciplined execution across the organisation.
Interest income went up to Sh10.7 billion up from Sh10.6 billion mainly driven by earnings from lending and investment in government securities.
The lender’s loan book closed the year at Sh46.9 billion up from Sh44.1 billion.
Over the past two years, under the leadership of Chief Executive Officer Bhartesh Shah, SBM Bank Kenya has undertaken a rigorous transformation focused on restoring operational stability, rebuilding customer confidence, and strengthening the balance sheet.
The lender also invested in modern digital payments infrastructure.
“Our 2025 performance marks an important milestone in SBM Bank Kenya’s transformation journey. 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,” SBM Bank Kenya CEO, Bhartesh Shah, said.
With the bank’s foundations now stabilised and customer engagement strengthening, SBM is entering its next phase of growth focused on scaling its digital payments ecosystem and deepening relationships across the affluent, SME and corporate segments.
“A key driver of this success has been the restoration of trust through stable systems and enhanced digital capabilities, which have enabled customers to transact more easily and confidently,” the lender said on Wedensday.
These improvements directly translated into strong growth in customer activity, with total customer deposits increasing 20 per cent year-on-year to Sh82.4 billion.
Growth was particularly robust in current and savings accounts (CASA) as customers increasingly utilised the bank’s payments and digital platforms for everyday transactions.
Consequently, non-interest income increased by 24 per cent to Sh2.1 billion, supported by higher transaction volumes across digital channels, trade finance services, and card-based payments.
Combined with a substantial 81 per cent, increase in net interest income, total operating income rose 55 per cent to Sh6 billion.
Even as the bank invested significantly in upgrading its technology infrastructure, operating costs remained tightly controlled, with total operating expenses remaining flat at Sh5.4 billion, pegged on “disciplined management.”
This fiscal prudence was matched by a significant improvement in asset quality, as gross non-performing loans declined by 34 per cent to Sh11.3 billion, down from Sh17.1 billion in FY2024.
This brought the NPL ratio down from 33.2 per cent to 22.5 per cent.
The bank concluded the year on a solid regulatory footing, with core capital standing at Sh7.7 billion—well above the Central Bank of Kenya’s minimum requirement—and a liquidity ratio of 47.6 per cent, which significantly exceeds regulatory mandates.
“With a stronger balance sheet, improving asset quality and growing customer engagement, SBM Bank Kenya is well positioned to continue expanding its payments ecosystem.”
The bank has accelerated its investment in technology, payments infrastructure and customer-focused innovation as it builds a modern banking franchise.
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