SBM Bank Kenya has made a remarkable recovery, posting a net profit of KSh 202 million for the year ended December 2024, marking a decisive turnaround from the preceding year’s heavy losses.
The bank’s restored profitability follows strategic financial manoeuvres, including substantial capital injections from its parent company and a targeted shift in focus toward more profitable customer segments.
In 2024, SBM Bank Kenya reported a net loss of Ksh 1.07 billion a steep decline from a profit of Ksh 129.6 million in 2023. This loss occurred despite the infusion of Ksh 819 million and prior support of Ksh 471 million from Mauritius-based SBM Holdings, aimed at shoring up capital levels ahead of rising regulatory requirements demanding a core capital increase to Ksh 10 billion over five years.
While 2024 remained challenging, the tide began to turn in Q1 of 2025, with the bank registering a profit of KSh 12.39 million its first in over a year.
Under Chief Executive Bhartesh Shah, who assumed leadership in May 2024, the bank realigned its strategies toward the mass-affluent segment, SMEs, and local businesses. This strategic pivot saw total operating income rise to Ksh 1.3 billion in Q1 2025 up from around Ksh 1.0 billion the previous year while operating expenses were trimmed by 5 percent to approximately Ksh 1.31 billion.
Shah attributed the resurgence to disciplined execution, saying the results “signal a new era for SBM Bank an era of bold ambition, customer‑centric innovation and operational excellence.”
The bank also witnessed a 28 percent increase in customer deposits, reaching Ksh 72.2 billion, while total assets climbed to Ksh 102.9 billion up from Ksh 90.6 billion in the prior year.
Beyond operational improvements, the bank strengthened its capital adequacy. After the parent’s injection, total capital stood at Ksh 8.72 billion, and the capital‑to‑risk ratio improved to 16 percent comfortably above the statutory minimum of 14.5 percent.
The injection was strategically timed to align with legal reforms aimed at raising the core capital threshold for banks efforts seen as prudent regulatory compliance by analysts.
Analysts suggest that SBM Bank’s renewed focus on SMEs, retail innovation, and tight expense control has laid a strong foundation for sustained recovery.
The Q1 profit, though modest, is seen as proof that the bank’s strategic pivot is yielding tangible outcomes. Market watchers will now be looking closely at whether SBM can sustain and build on this momentum.
Moving forward, the bank plans to deepen relationships with the mass-affluent and digitally savvy customers, expand its SME offerings, and continue streamlining operations to boost efficiency.
The leadership under Shah appears confident that these efforts will drive growth and secure SBM’s long-term positioning in the competitive Kenyan banking sector.
Having navigated a formidable challenge, SBM Bank Kenya now emerges as a leaner, more focused player one poised to capitalize on the country’s economic opportunities and enhanced regulatory framework through disciplined strategy and solid execution.
Written By Ian Maleve
