SBM Bank Kenya has posted a KSh 444.22Mn after-tax profit for the full year ended 31 December 2025, reversing a KSh 1.21Bn loss in 2024, as a sharp drop in funding costs unlocked the bank's strongest financial performance in years.
- •The turnaround was driven principally by a 19.6% decline in total interest expense, which fell to KSh 6.86Bn from KSh 8.53Bn.
- •The bank shifted away from expensive interbank borrowing as customer deposits rose 20.1% to KSh 82.41Bn, cutting interest paid to banking institutions from KSh 3.37Bn to 1.89Bn.
- •SBM returned a modest KSh 12.39Mn after-tax profit in Q1 2025, widened that to KSh 202Mn before tax at the half-year, and reached KSh 412Mn before tax through nine months, before closing the full year at KSh 613.96Mn before tax.
The lender's net interest income more than doubled to KSh 3.88Bn from KSh 2.15Bn while total operating income rose 55.4% to KSh 5.99Bn. Non-interest income grew 23.5% to KSh 2.11Bn, supported by fees on loans and advances, foreign exchange trading, and higher transaction volumes across digital channels. Operating expenses edged down 1.4% to KSh 5.37Bn, while the loan loss provision fell 26.4% to KSh 314.34Mn as credit quality improved.
| Metric | FY 2025 | FY 2024 Restated | YoY Change |
|---|---|---|---|
| Total Interest Income | 10.74Bn | 10.68Bn | ▲+0.6% |
| Total Interest Expense | 6.86Bn | 8.53Bn | ▼-19.6% |
| Net Interest Income | 3.88Bn | 2.15Bn | ▲+80.7% |
| Total Non-Interest Income | 2.11Bn | 1.70Bn | ▲+23.5% |
| Total Operating Income | 5.99Bn | 3.85Bn | ▲+55.4% |
| Total Operating Expenses | 5.37Bn | 5.45Bn | ▼-1.4% |
| Loan Loss Provision | 314.34Mn | 427.09Mn | ▼-26.4% |
| Profit/(Loss) before Tax | 613.96Mn | (1.60Bn) | ▲+turnaround |
| Profit/(Loss) after Tax | 444.22Mn | (1.21Bn) | ▲+turnaround |
| Total Assets | 105.72Bn | 100.16Bn | ▲+5.5% |
| Net Loans and Advances | 46.96Bn | 44.19Bn | ▲+6.3% |
| Customer Deposits | 82.41Bn | 68.59Bn | ▲+20.1% |
| Total Shareholders' Equity | 10.39Bn | 8.62Bn | ▲+20.6% |
| Gross NPLs | 11.29Bn | 17.12Bn | ▼-34.1% |
Gross non-performing loans fell 34.1% to 11.29Bn from KSh 17.12Bn, one of the more material balance sheet shifts in the period. The NPL ratio declined to 22.5% from 33.2%, though it remains among the higher readings in Kenya's mid-tier banking segment.
Total assets grew 5.5% to KSh 105.72Bn. The bank's core capital stood at KSh 7.69Bn, above the Central Bank of Kenya's revised minimum of KSh 3.0Bn, with a total capital adequacy ratio of 15.0% against the 14.5% statutory floor. Liquidity was 47.6%, more than double the 20% requirement.
SBM still carries accumulated losses of KSh 2.95Bn on its books, a legacy of years of losses since the group entered Kenya through the acquisition of Fidelity Commercial Bank in 2017 and Chase Bank assets in 2018.
