SBM Bank Kenya more than doubled pretax profit in the first nine months of 2026, helped by stronger interest and fee income and a sharper fall in bad loans.
Profit before tax rose 122 per cent to Sh911 million in the period ended September 30 from Sh411 million a year earlier, Capital FM, TechMoran and Money254 reported. Operating profit climbed 197 per cent to Sh1.3 billion from Sh447 million.
Income up, costs growing slower
Total income increased 33 per cent to Sh5.444 billion. Net interest income rose 29 per cent to Sh3.443 billion and non-funded income 39 per cent to Sh2.001 billion. Transactional income nearly doubled, up 95 per cent, while trade finance commissions rose 98 per cent. Operating costs grew 12 per cent, below the pace of income growth.
Customer deposits rose 29 per cent year on year to Sh97.3 billion. Net loans and advances increased 23 per cent to Sh56.5 billion.
Chief executive Bhartesh Shah said the bank had focused on systems, credit discipline and deeper customer relationships. “The growth in deposits is encouraging because it reflects customer confidence. Our task is to honour that confidence through reliable service, sound judgement and financing that helps households and businesses move forward,” he said, according to Capital FM and Money254.
Legacy book still the drag
The non-performing loan ratio fell to 16.9 per cent from 32.3 per cent a year earlier and from 17.3 per cent at the end of June. The bank booked a net impairment charge of Sh418 million in the nine months.
Loans written since May 2024, when Shah took office, had an NPL ratio of 1 per cent, the bank said. “We are working on the legacy loan book while building a healthier portfolio for the future,” Shah told TechMoran.
SBM has completed an upgrade to Oracle FLEXCUBE 14.8 and migrated to the iCUST loan-origination platform. It is pushing digital onboarding, mobile banking, its Busara loyalty programme and zero-fee PesaLink transfers. The Kenyan unit is part of Mauritius-based SBM Group and entered the market in 2017.
Banks that are hiring for credit, digital and branch roles often post openings on Job in Kenya, alongside other lenders rebuilding books after the rate-cut cycle.
Sources: Capital FM | TechMoran | Money254
Photo: Jlewistexas / Wikimedia Commons (CC BY-SA 4.0)
