SBM Bank Kenya has announced a strong start to 2026, reporting a profit before tax (PBT) of KShs. 246 million for the first quarter up from KShs. 12 million in Q1 2025 reinforcing the Bank’s shift from turnaround stabilisation to sustainable, scalable performance.
The quarter’s results reflect disciplined execution of a CEO-led transformation agenda focused on balance sheet optimisation, customer growth, and transaction-led banking supported by targeted investment in technology, digital journeys and payments capabilities.
SBM Bank Kenya delivered a strong start to 2026, with profit before tax rising to KShs. 246 million in Q1 2026 from KShs. 12 million in Q1 2025, reflecting sustained momentum in the Bank’s turnaround strategy. Total assets increased to KShs. 109.5 billion (from KShs. 102.9 billion), while customer deposits grew 23% year-on-year to KShs. 89.0 billion, driven by an expanding customer base and deeper engagement across segments.
Growth was supported by a balanced asset mix, with net loans and advances at KShs. 48.5 billion and government securities at KShs. 44.0 billion. Net interest income stood at KShs. 1.1 billion, supported by disciplined funding cost management, with interest expenses down 15% year-on-year. Non-interest income rose 55% to KShs. 673 million, driven by higher transaction volumes across digital and payments channels. Asset quality improved significantly, with gross non-performing loans declining 41% to KShs. 10.0 billion and the NPL ratio improving from 33.8% to 19.8%.
Overall operating income rose to KShs. 1.7 billion, while operating expenses increased by a controlled 13% reflecting disciplined cost management alongside continued investment in technology and infrastructure to support long-term growth and service stability.
Commenting on the results, SBM Bank Kenya Chief Executive Officer Bhartesh Shah said,“These results are not an accident. Since I took office, we have reset how the Bank is run through tighter execution, clearer accountability, and a relentless focus on customer activity. Q1 shows the payoff: stronger earnings quality, stronger deposits, and a cleaner book.”
He added, “We are building a different kind of bank in Kenya, a payments-led bank that customers trust for everyday transactions. When you win transactions, you win the relationship, and the economics follow. From 1 May, we have made PesaLink transfers free to customers ultimately removing friction and accelerating adoption and you can already see that direction in our non-funded income growth and digital momentum.”
In closing Mr, Shah added, “The transformation is now shifting from stabilisation to scale. Our growth is anchored on repeatable drivers such as transactions, deposits, and disciplined risk, while keeping the customer firmly at the centre. By investing in the everyday journeys and innovations our customers rely on, we are building performance that is both resilient and sustainable.”
Innovation remained a central pillar of the Bank’s strategy during the quarter as SBM advanced its ambition to become a payments-led bank. This included the launch of the Busara Banking App an innovation designed around real customer needs and built to help parents raise money‑smart children through every day, guided saving and spending. Busara is the first solution of its kind in Kenya, the first in Africa, and among the very few if any, comparable family‑led financial literacy banking propositions globally. The launch reinforces SBM’s commitment to putting the customer at the centre therefore building simple, practical tools that make banking more useful, more inclusive, and more relevant to daily life.
Further reinforcing its payments-led strategy, the Bank has reduced the cost of PesaLink transfers to zero effective 1 May 2026, a deliberate move to remove friction for customers, accelerate adoption of instant payments, and drive higher everyday transaction volumes across our digital channels.
SBM Bank maintained a strong capital and liquidity position during the period, with core capital at KShs. 7.8 billion, well above regulatory requirements, and a liquidity ratio of 50.4%, significantly exceeding the statutory minimum, providing capacity to support future growth.
Looking ahead, the Bank will continue to invest in technology-driven innovation, payments infrastructure and customer-centric solutions to accelerate transaction growth, deepen deposits and further strengthen asset quality. The Bank remains focused on scaling its payments ecosystem and delivering long-term value for customers and stakeholders.
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