SBM Bank Records 171% Growth in Profit to Ksh548 Million in H1 2026

SBM Bank Kenya has continued to post strong financial performance with profit increasing to Ksh548 million, up from Ksh202 million during the same period in 2025.

In a statement on Wednesday, the bank said the 171% increase in profit before tax was driven by its focus on improving earnings quality, strengthening its balance sheet and risk profile, enhancing customer experience, and investing in the capabilities required for sustainable growth.

Operating profit rose almost fourfold to Ksh852 million, while customer deposits increased by 24% to Ksh94.0 billion, reflecting growing customer confidence in the bank.

Net loans and advances also increased by 18% to Ksh54.1 billion, supporting households and businesses across Kenya. Non-performing loans fell by nearly half to17.3%, down from 32.4% a year earlier. Total assets grew to Ksh109.9 billion, while shareholder equity strengthened to Ksh11.1 billion. The bank added that its capital and liquidity levels remained comfortably above the Central Bank of Kenya's regulatory requirements.

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Two Year Run

Net interest income increased to Ksh2.2 billion, while non-funded income grew by 54% to Ksh1.39 billion, driven by higher customer activity and transaction volumes. Total operating income rose by 35%, substantially outpacing the 12% increase in operating expenses and generating strong positive operating leverage despite continued investment in technology and infrastructure.

According to SBM Bank Chief Executive Officer Bhartesh Shah, "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."

"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," he added.

SBM Bank Kenya also continued to invest significantly in technology, operational resilience and customer experience during the first half of 2026.

According to the bank, a major milestone was the successful upgrade of its core banking platform to Oracle FLEXCUBE 14.8, making SBM Bank Kenya the first bank globally to go live on this version. The upgrade has enhanced system performance, resilience, security and scalability, providing a stronger technology foundation for continued innovation and future growth.

Innovative Banking

The bank also 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 Ksh1 million through the Mfukoni mobile and online banking platforms.

The strong half-year performance follows a similar rise in profitability during the first quarter of 2026, when the bank posted a profit before tax of Ksh246 million, up from Ksh12 million recorded during the same period in 2025.

According to Shah, SBM is leveraging technology as a strategic enabler of better customer outcomes, greater resilience and sustainable long-term growth.

"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 that plays an increasingly important role in Kenya's economic development," Shah concluded.