SBM Bank (Kenya) Limited has reported a strong start to 2026, posting a profit before tax (PBT) of KSh 246 million in the first quarter, a significant jump from KSh 12 million recorded in Q1 2025. The performance underscores the Bank’s ongoing shift from turnaround stabilisation to a phase of sustainable and scalable growth.
The results reflect what the Bank describes as disciplined execution of a CEO-led transformation agenda anchored on balance sheet optimisation, customer growth, and transaction-led banking, supported by continued investment in technology, digital customer journeys, and payments infrastructure.
During the period, SBM Bank Kenya recorded broad-based growth across key financial indicators. Total assets rose to KSh 109.5 billion, up from KSh 102.9 billion, while customer deposits expanded by 23% year-on-year to KSh 89.0 billion, driven by an expanding customer base and deeper engagement across market segments.
The Bank’s lending and investment portfolio remained balanced, with net loans and advances standing at KSh 48.5 billion, complemented by government securities of KSh 44.0 billion. Net interest income came in at KSh 1.1 billion, supported by disciplined funding cost management, with interest expenses declining by 15% year-on-year.
Non-interest income recorded strong growth of 55% to KSh 673 million, driven largely by increased transaction volumes across digital and payments channels, reinforcing the Bank’s shift toward a transaction-led revenue model.
Asset quality also showed marked improvement, with gross non-performing loans declining by 41% to KSh 10.0 billion. This saw the NPL ratio improve significantly from 33.8% to 19.8%, reflecting tighter risk controls and improved recoveries.
Overall operating income rose to KSh 1.7 billion, while operating expenses increased modestly by 13%, a level the Bank attributes to controlled cost management alongside continued strategic investments in technology and infrastructure.
Commenting on the performance, SBM Bank Kenya Chief Executive Officer 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, “We are 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 1 May, 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 further noted,“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 key pillar of the Bank’s strategy during the quarter, highlighted by the launch of the Busara Banking App. The platform is designed around customer needs and aims to support parents in raising financially aware children through guided saving and spending tools.
The Bank described Busara as a first-of-its-kind solution in Kenya, the first in Africa, and among the few similar family-focused financial literacy banking propositions globally. It forms part of SBM’s broader strategy of embedding simplicity, inclusion, and practical value into everyday banking.
Further strengthening its payments-led model, SBM Bank reduced PesaLink transfer fees to zero effective 1 May 2026, a strategic move aimed at removing friction, accelerating adoption of instant payments, and increasing transaction volumes across digital platforms.
The Bank maintained a strong capital and liquidity position, with core capital at KSh 7.8 billion, well above regulatory thresholds, and a liquidity ratio of 50.4%, significantly above the statutory minimum. This positions the lender to support future growth while maintaining financial stability.
Looking ahead, SBM Bank said it will continue investing in technology-driven innovation, payments infrastructure, and customer-centric solutions to deepen deposits, accelerate transaction growth, and further strengthen asset quality as it scales its payments ecosystem and long-term value creation strategy.
