SBM Bank Returns to Profit, Posts Sh283.4 Million in Nine-Month Turnaround

SBM Bank Kenya has reported a Sh283.41 million net profit for the nine months ending September 2025, marking a sharp recovery from a Sh1.34 billion loss recorded over the same period last year.

According to the lender’s latest financial disclosures, the turnaround was driven by a 95.5% surge in net interest income to Sh2.76 billion and a 29.8% increase in non-interest income to Sh1.54 billion, supported by stronger customer engagement and operational efficiency. Operating expenses slightly declined to Sh3.89 billion, signaling improved cost management.

Management attributed the performance to what it termed a renewed focus on “customer-led innovation” and disciplined execution, highlighting that the results reflected a sustainable shift in the bank’s strategy.

Despite the gains, SBM Bank noted that loan-loss provisions rose by 63.6% to Sh235.4 million, pointing to ongoing pressures in asset quality. Staff costs remained stable at Sh1.75 billion, even as the lender continued tightening spending to safeguard profitability.

The profit recovery follows a difficult 2024 period when elevated interest expenses and compressed margins hurt the lender’s balance sheet, prompting fresh capital infusion from SBM Holdings and a pivot toward digital platforms and targeted customer segments.

Looking ahead, the bank said it will continue strengthening its presence in payments, savings, and ecosystem partnerships, focusing on affluent and entrepreneurial clients to sustain growth.

SBM’s management noted that margin recovery and efficiency gains achieved so far position the lender to compete effectively as interest rates ease and transaction banking deepens across the Kenyan market. The bank emphasized that maintaining funding discipline and strong credit risk controls will be key to sustaining the current momentum while expanding its fee-earning business lines.