SBM Bank Kenya returned to profit in 2025, posting a KSh 613.96 million profit before tax for the year ended 31 December, against a KSh 1.6 billion loss in 2024. After tax, the bank recorded a KSh 444.22 million profit, compared with a KSh 1.21 billion loss the prior year.
The shift from an operating loss of KSh 1.8 billion in 2024 to an operating profit of KSh 780 million in 2025 captures the scale of the change.
Chief Executive Officer Bharath Shah attributed the results to restructuring and operational work carried out over the preceding two years.
“Our 2025 performance marks an important milestone in SBM Bank Kenya’s transformation journey,” Shah said. “We have moved from stabilisation to sustainable growth, strengthening our balance sheet while investing in innovation that improves how customers transact and manage their finances.”
Cheaper Deposits Drive Margin Expansion
The core driver was a 19.6% decline in total interest expense, which fell to KSh 6.86 billion from KSh 8.53 billion. Customer deposits rose 20% to KSh 82.41 billion — growth concentrated in current and savings accounts tied to increased use of digital and payments channels. As the deposit base expanded, reliance on costly interbank funding fell. Interest paid to other banking institutions dropped from KSh 3.37 billion to KSh 1.89 billion.
Net interest income climbed 80.7% to KSh 3.88 billion. Total operating income rose 55% to KSh 5.99 billion. Non-interest income grew 24% to KSh 2.11 billion, supported by digital platform volumes, trade finance, and card payments. Operating expenses held at KSh 5.37 billion — down 1.4% — despite increased technology investment. The loan loss provision fell 26.4% to KSh 314.34 million as credit quality improved.
Key Financial Metrics: FY 2025 vs FY 2024
| Metric | FY 2025 | FY 2024 | Change |
|---|---|---|---|
| Total Interest Income | KSh 10.74Bn | KSh 10.68Bn | ▲ +0.6% |
| Total Interest Expense | KSh 6.86Bn | KSh 8.53Bn | ▼ -19.6% |
| Net Interest Income | KSh 3.88Bn | KSh 2.15Bn | ▲ +80.7% |
| Non-Interest Income | KSh 2.11Bn | KSh 1.70Bn | ▲ +23.5% |
| Total Operating Income | KSh 5.99Bn | KSh 3.85Bn | ▲ +55.4% |
| Total Operating Expenses | KSh 5.37Bn | KSh 5.45Bn | ▼ -1.4% |
| Loan Loss Provision | KSh 314.34Mn | KSh 427.09Mn | ▼ -26.4% |
| Profit/(Loss) before Tax | KSh 613.96Mn | (KSh 1.60Bn) | Turnaround |
| Profit/(Loss) after Tax | KSh 444.22Mn | (KSh 1.21Bn) | Turnaround |
| Total Assets | KSh 105.72Bn | KSh 100.16Bn | ▲ +5.5% |
| Customer Deposits | KSh 82.41Bn | KSh 68.59Bn | ▲ +20.1% |
| Gross NPLs | KSh 11.29Bn | KSh 17.12Bn | ▼ -34.1% |
NPL Ratio Falls, Though It Remains Elevated
Gross non-performing loans fell 34% to KSh 11.3 billion from KSh 17.1 billion. The NPL ratio dropped to 22.5% from 33.2%. The improvement is material, though the ratio remains among the higher readings in Kenya’s mid-tier banking segment.
Capital and Liquidity Within Regulatory Bounds
Total assets grew 5.5% to KSh 105.72 billion. Core capital stood at KSh 7.7 billion, above the Central Bank of Kenya’s minimum of KSh 3.0 billion. The total capital adequacy ratio reached 15.0% against the 14.5% statutory floor. The liquidity ratio of 47.6% sat at more than double the 20% regulatory requirement.
The Accumulated Loss Overhang Remains
One profitable year does not resolve the bank’s KSh 2.95 billion in accumulated losses — a legacy of sustained losses since SBM Group entered Kenya through the acquisition of Fidelity Commercial Bank in 2017 and the assumption of selected Chase Bank assets in 2018.
