SBM Bank Kenya Ltd recorded a KSh 202 million profit before tax for the half year ended June 2025, reversing a KSh 943 million loss in the same period in 2024.
- •Operating income rose 65% year-on-year to KShs 2.8 billion, supported by growth in interest income from loans and government securities.
- •At the same time, total operating expenses declined by 2% to KShs 2.61 billion, helping the bank return to profitability.
- •The turnaround was driven by a significant increase in income and tighter control of operating expenses.
The lender’s total assets expanded by 14% to KShs 105.7 billion, up from KSh 92.6 billion in H1 2024, while customer deposits rose by 37% to KShs 76.2 billion, reflecting broader deposit mobilization efforts and growth in the bank’s customer base.
Net interest income nearly doubled to KShs 1.84 billion from KShs 958 million in H1 2024. Interest income from loans stood at KShs 3.05 billion, while income from government securities was KShs 2.13 billion. Interest expenses also increased but at a slower pace, reaching KShs 3.59 billion.
| Indicator | H1 2025 | H1 2024 | Y-o-Y Change |
| Profit Before Tax | KShs 202 Million | (KShs 943 Million) | Reversal to Profit |
| Operating Income | KShs 2.8 Billion | KShs 1.7 Billion | +65% |
| Operating Expenses | KShs 2.61 Billion | KShs 2.67 Billion | -2% |
| Net Interest Income | KShs 1.84 Billion | KShs 958 Million | +92% |
| Non-Interest Income | KShs 976 Million | KShs 771 Million | +27% |
| Loan Loss Provisions | KShs 191 Million | KShs 123 Million | +55% |
| Total Assets | KShs 105.7 Billion | KShs 92.6 Billion | +14% |
| Customer Deposits | KShs 76.2 Billion | KShs 55.7 Billion | +37% |
| Core Capital | KShs 8.0 Billion | KShs 7.5 Billion | +6.7% |
| Capital Adequacy Ratio | 16.0% | 15.0% | +1.0% |
| Liquidity Ratio | 45.9% | 27.3% | +18.6% |
Non-interest income rose to KShs 976 million, supported by foreign exchange trading and fees on customer transactions. Loan loss provisions increased to KShs 191 million, up from 123 million, amid efforts to strengthen coverage on non-performing loans.
Gross non-performing loans (NPLs) stood at KShs 16.84 billion, slightly down from KShs 17.12 billion in December 2024.
Capital and Liquidity Position
SBM maintained a core capital position of KShs 8.0 billion and a capital adequacy ratio of 16.0%. Total risk-weighted assets were KShs 54.0 billion, broadly flat compared to the previous quarter, indicating limited risk expansion during the period.
Outlook
The bank’s H1 2025 results reflect the early impact of recent restructuring and cost discipline measures.
Although profitability is still relatively low, the return to positive earnings, alongside steady asset growth and strong liquidity, points to a gradual improvement in the bank’s underlying performance. Higher provisioning expenses and pressure on margins could weigh on progress in the second half.
