SBM Bank has announced a remarkable financial turnaround, posting a net profit of KES 283.41 million for the first nine months of 2025. This result marks a significant recovery from the KES 1.4 billion net loss the lender suffered in the same period the previous year. The bank’s impressive performance was primarily driven by substantial growth in its core revenue streams, with net interest income surging by 95.5%to KES 2.76 billion and non-interest income growing by 29.8% to KES 1.54 billion.
The robust income growth was further elevated by prudent cost management, as the bank marginally lowered its operating expenses to KES 3.89 billion. However, it also increased its provision for bad debts by 63.6% to KES 235 million, indicating a cautious approach to risk. Staff costs remained steady at KES 1.75 billion to account for 44.9% of operating expenses in the period as compared to 44.3% in the same period in the previous year.
“Our performance reflects the disciplined execution of our turnaround strategy and the power of customer led innovations. through smarter digital platforms, relevant products, and strong partnerships, we are delivering a bold, secure and modern banking experience.” Bhartesh Shah – SBM Bank Kenya CEO.
“We remain committed to driving inclusive financial growth and becoming Kenya’s preferred payments and savings bank,” he added.
SBM Bank Return to Profit
This return to profitability by SBM bank is a welcome development for a bank that spent the entirety of the previous year in red, ultimately closing with a net loss of KES 1.07 billion. That loss was largely due to a decrease in net interest income, as interest expenses had risen at a faster pace than income. During that challenging period, the bank’s parent company, SBM Holdings, provided a capital injection of KES 471 million to support its operations.
SBM Holdings’ entry into the Kenyan market began in May 2017 with the acquisition of Fidelity Commercial Bank for a nominal sum, followed by a USD 20 million capital injection. The group further expanded in August 2018 by acquiring certain assets and liabilities of the then-under receivership Chase Bank Kenya, committing to inject an additional USD 60 million to bolster the venture.
To secure its future growth, SBM Bank Kenya has been strategically shifting its focus towards serving affluent and entrepreneurial clients through new product launches and investments in digital platforms. The bank has also entered into several strategic collaborations with fintech and ecosystem partners to enhance the capabilities of its payment solutions. Despite the recent profit, the lender is still carrying an accumulated loss of KES 2.38 billion on its books, indicating the level of the challenge it has faced and the ongoing journey towards full recovery.
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