SBM Bank (Kenya) has announced a strong start to 2026, reporting a profit before tax of 246 million for the first quarter, up from Sh12 million in Q1 2025.
This reinforces the bank’s shift from turnaround stabilisation to sustainable, scalable performance.
The quarter’s results reflect disciplined execution of a CEO-led transformation agenda focused on balance sheet optimisation, customer growth and transaction-led banking, supported by targeted investment in technology, digital journeys and payments capabilities.
Total assets increased to Sh109.5 billion (from Sh102.9 billion), while customer deposits grew 23 per cent year-on-year to Sh89.0 billion, driven by an expanding customer base and deeper engagement across segments.
Growth was supported by a balanced asset mix, with net loans and advances at Sh48.5 billion and government securities at Sh44.0 billion.
Net interest income stood at Sh1.1 billion, supported by disciplined funding cost management, with interest expenses down 15 per cent year-on-year.
Non-interest income rose 55 per cent to Sh673 million, driven by higher transaction volumes across digital and payments channels.
Asset quality improved significantly, with gross non-performing loans declining 41 per cent to Sh10billion and the NPL ratio improving from 33.8 per cent to 19.8 per cent.
Overall operating income rose to Sh1.7 billion, while operating expenses increased by a controlled 13 per cent reflecting disciplined cost management alongside continued investment in technology and infrastructure to support long-term growth and service stability.
Commenting on the results, SBM Bank Kenya CEO Bhartesh Shah said: “These results are not an accident. Since I took office, we have reset how the Bank is run through tighter execution, clearer accountability and a relentless focus on customer activity. Q1 shows the payoff: stronger earnings quality, stronger deposits, and a cleaner book.”
He added that the lender is building a different kind of bank in Kenya, a payments-led bank that customers trust for everyday transactions.
“When you win transactions, you win the relationship and the economics follow. From May 1, we have made PesaLink transfers free to customers ultimately removing friction and accelerating adoption and you can already see that direction in our non-funded income growth and digital momentum.”
Shah said the transformation is now shifting from stabilisation to scale.
“Our growth is anchored on repeatable drivers such as transactions, deposits, and disciplined risk, while keeping the customer firmly at the centre. By investing in the everyday journeys and innovations our customers rely on, we are building performance that is both resilient and sustainable.”
Innovation remained a central pillar of the bank’s strategy during the quarter as SBM advanced its ambition to become a payments-led bank.
This included the launch of the Busara Banking App an innovation designed around real customer needs and built to help parents raise money‑smart children through every day, guided saving and spending.
Busara is the first solution of its kind in Kenya, the first in Africa, and among the very few if any, comparable family‑led financial literacy banking propositions globally.
The launch reinforces SBM’s commitment to putting the customer at the centre therefore building simple, practical tools that make banking more useful, more inclusive, and more relevant to daily life.
Further reinforcing its payments-led strategy, the bank has reduced the cost of PesaLink transfers to zero effective May 1, 2026, a deliberate move to remove friction for customers, accelerate adoption of instant payments, and drive higher everyday transaction volumes across our digital channels.
SBM Bank maintained a strong capital and liquidity position during the period, with core capital at Sh7.8 billion, well above regulatory requirements, and a liquidity ratio of 50.4 per cent, significantly exceeding the statutory minimum, providing capacity to support future growth.
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