What SBM Bank Kenya’s Turnaround Tells Us About the Future of Banking

SBM Bank Kenya returned to profitability in 2025, posting a pre-tax profit of Ksh614 million, a sharp reversal from a Ksh1.6 billion loss the previous year. The result marks a Ksh2.2 billion swing in profitability, one of the sharpest turnarounds in Kenya’s banking sector in recent years.

A look at the financials show that the turnaround was driven by a combination of strong income growth, tighter cost control, and a deliberate shift in strategy. Rather than pursue rapid expansion, the bank focused on stabilizing its core operations; improving system reliability, reducing bad loans and rebuilding customer confidence.

As a result, net interest income rose by 81%, while non-interest income increased by 24% to Ksh2.1 billion, supported by higher transaction volumes across digital channels, trade finance and card payments. Total operating income grew 55% YoY to Ksh6 billion.

Operating profit swung from a loss of Ksh1.8 billion in 2024 to Ksh780 million in 2025, with operating expenses remaining largely flat.

Growth in Kenya’s banking sector has been incremental, but the scale and speed of SBM’s recovery positions was among the standout performers over the past year.

The results, however, tell only part of the story, pointing to a broader shift in how banks are redefining value.

 “Beyond these encouraging numbers, the underlying transformation matters more,” the bank’s CEO, Bhartesh Shah, said when announcing the results.

Laying the Foundation

SBM, which also has a presence in Mauritius, India and Madagascar, entered Kenya in 2017 following the acquisition of Fidelity and select assets and liabilities of Chase Bank, marking one of the more complex banking transitions in the country’s recent history.

The bank later built a presence across retail, corporate and SME banking segments.

Fixing the Core Before Growth

“We chose to stabilize before scaling,” the CEO said, pointing to a strategy anchored on stronger operations and rebuilding customer trust.

SBM’s customer-centric approach is reflected in its product suite, notably the Platinum Saver and Pebble Accounts, designed to offer both accessibility and strong returns. Customers earn up to 8.5% per annum (effective February 2026) on balances above Ksh100,000, with additional USD, GBP, and Euro options to grow savings in foreign currency.

These solutions address rising demand for value in a high-cost environment. The Pebble Account also integrates with the Busara app, supporting customers from early financial learning to disciplined saving. This holistic approach demonstrates a strong understanding of the customer lifecycle and reinforces SBM’s long-term engagement strategy.

The impact is reflected in deposit growth. Customer deposits rose by 20% to Ksh82.4 billion during the year, with the strongest growth recorded in current and savings accounts. For this, SBM has also been recognized as an industry leader, winning multiple awards in instant payments.

Innovation Beyond Transactions

The focus on the consumer extends to areas of financial behaviour that are often overlooked by traditional banking products.

SBM recently launched the Busara App, a financial management tool for children that allows parents to assign tasks, monitor spending and guide savings habits - adding financial literacy into everyday family life.

“We’re the first and only to have this not just in Kenya, but across Africa as well,” the CEO said during the Busara launch.

SBM has also been expanding its approach to supporting SMEs, a segment that accounts for over 80% of employment and contributes to about a third of Kenya’s GDP through the Jijenge Biashara account which offers SME’s loans which are twice their savings while also generating an interest on their deposits This solution enables SME’s build financial reserves that support strategic growth or respond to risks in their businesses.

The bank has also partnered with asset providers to finance vehicles and equipment, enabling businesses to acquire productive assets tied directly to their operations.

 Rather than offering credit in isolation, these models link financing to real business activity; improving visibility on cash flows and aligning lending with how businesses actually operate.

Elevating Everyday Value Through Card Solutions

Recognizing the need to equip customers with effective payment solutions, SBM seeks to elevate the customer’s card usage experience.  The SBM Mastercard solutions reflect its commitment to delivering everyday value with uncompromising security.

Through a curated range of Mastercard-powered cards, customers transact seamlessly across local and global markets while enjoying meaningful lifestyle benefits. Cardholders access exclusive discounts with leading travel, hospitality, and retail partners, turning everyday payments into savings and enhanced experiences.

These solutions are backed by Mastercard’s advanced security features, including real-time fraud monitoring, tokenization, and multi-layered protection, ensuring safe transactions in-store, online, or abroad. This blend of value and protection positions SBM’s Mastercard portfolio as a trusted financial companion for the modern, globally connected customer.

The Future of Kenyan Banking

SBM’s turnaround story is also a story about how the banking sector is changing in Kenya.

In retail banking, this is playing out through everyday transactions, where lower costs and more reliable systems are encouraging customers to consolidate more of their financial activity within a single platform.

In business banking, ecosystem-based models are increasingly driving growth, where financing is tied directly to real business activity. Banks, in this model, play a more active role in enabling business growth rather than simply extending credit.

In this environment, the banks that succeed are those that are hardest to replace in their customers’ day-to-day financial decisions.

Wrapping Up

With its balance sheet stabilized and core operations strengthened, SBM is now shifting towards growth, targeting digital payments and SME support, critical differentiators in Kenya’s banking sector.

“We proved we can stabilize, now we are ready to grow,” the CEO said of the future. What that growth looks like, however, may be different from the past. As competition grows, expansion is increasingly being shaped by how indispensable banking services are to customers’ everyday financial lives. SBM appears ready for that phase.