SBM Bank, a tier 2 lender in Kenya, has returned to profitability in the first half of 2025, posting an after-tax profit of nearly $1.6 million—reversing a loss of almost $7.3 million recorded in the same period of last year.
SBM is the first Kenyan commercial bank to release its half-year financial results for 2025. The improved performance builds on gains made from the bank’s ongoing strategic transformation plan, which had already lifted profits in the first quarter of the year to roughly $95,900, compared to a $2.86 million loss in Q1 of last year.
The half-year results, announced by Bhartesh Shah, the bank’s CEO, on Thursday, also showed significant balance sheet growth.
Further analysis of the result shows that SBM’s total assets rose by 14% to about $811.6 million in June 2025, up from around $716.3 million in the same period a year earlier.
Customer deposits climbed by 37% year-on-year to reach approximately $587.9 million, up from $432.7 million, with a quarter-on-quarter growth rate of 5%. The lender’s credit portfolio also expanded modestly, with net loans and advances increasing by 5% to about $355.8 million.
However, the bank saw a rise in gross non-performing loans, which grew by 15.6% from approximately $112.9 million to $129.9 million —highlighting continued challenges in loan recovery.
“Last year we made a loss of Sh943 million ($7.25 million). This year,, for the first half we are announcing a profit of Sh202 million ($1.56 million),” said Shah. “The main drivers of the profit recorded in H1 2025 were largely all the elements of the execution of our strategic plan.”
Total operating income rose by 68% to about $21.64 million in the first half of 2025, up from roughly $13.37 million in the same period last year.
Shah added that total operating expenses declined by 5% year-on-year in H1 2025,, although the updated figures were not disclosed.
“I would say that all the products and segments: corporate, small and medium enterprises, retail, as well as treasury teams, grew significantly,” he said.
“They have all grown according to our strategic plan, contributing not only to the growth in the balance sheet but also to the increase in income levels — particularly, more customer transactions which resulted in higher growth in non-funded income as well.”
The bank also recorded a strong liquidity ratio of 45.9% in the first half, more than double the regulatory minimum of 20%.
As of Q1, SBM’s core capital stood at approximately Sh8 billion or $61.9 million, well above the Central Bank of Kenya’s minimum requirement of Sh3 billion or about $23.2 million by the end of the year. The figures were converted using the exchange rate Sh129.19/$1 as of July 24, 2025.
Looking ahead, the lender says it plans to expand its digital footprint and develop more innovative products to enhance the customer experience.
“We are also focusing on higher transaction efficiency to continue positioning ourselves as the main payment bank for our customers,” Shah said.
SBM Bank became a Tier 2 lender in 2018 after acquiring the assets of the collapsed Chase Bank Kenya, a move that boosted its balance sheet.
NB: The financial results were originally reported in Kenya shilling and have been converted to US dollars using 129.2/$1 as of June 30, 2025, except otherwise indicated.
