SBM Bank Kenya posts a $1.6M H1 2025 profit, reversing losses. Deposits and income grow, assets expand, and liquidity strengthens.
SBM Bank Kenya, a Tier 2 lender, has swung back to profitability, reporting an after-tax profit of $1.56 million for the first half of 2025. This marks a sharp turnaround from a $7.3 million loss in the same period of the previous year.
SBM is the first Kenyan bank to publish half-year results for 2025. Their strategic transformation yielded early progress in Q1, bringing in a modest $95,900 profit versus a $2.86M loss in Q1 2024.
📈 Balance Sheet Highlights
- Total assets jumped 14% to $811.6 million, from $716.3M a year earlier.
- Customer deposits surged 37% year-on-year to $587.9 million, with a 5% quarter-on-quarter rise.
- Net loans and advances grew 5% to $355.8 million.
Despite this, gross non-performing loans rose 15.6%—climbing from $112.9M to $129.9M—indicating ongoing credit recovery challenges.
💼 Income, Expenses & Liquidity
- Operating income surged 68% to $21.64 million, from $13.37M in H1 2024.
- Operating expenses fell by 5%, boosting overall margins.
SBM’s liquidity ratio now stands at 45.9%, more than double Kenya’s regulatory minimum of 20%. Its core capital reached Sh8 billion (~$61.9M), quadruple the threshold set by the Central Bank of Kenya.
🎯 CEO Insights & Strategic Direction
CEO Bhartesh Shah credited the strategic transformation for SBM’s turnaround:
“Last year we lost Sh943M (~$7.25M); this year we’re reporting a profit of Sh202M ($1.56M). Our strategic execution across all segments made this possible.”
He added that all key business areas—corporate, retail, SME, and treasury—contributed to growth.
SBM aims to expand its digital services, enhance payment solutions, and strengthen its position as a leading payment bank for customers.
📌 Background and Future Focus
After acquiring Chase Bank Kenya’s assets in 2018, SBM solidified its market position as a growing Tier 2 lender. The latest half-year results affirm its financial recovery and strategic turnaround momentum.
Exchange rate note: Conversions use Sh129.2 per $1, as of June 30, 2025.
