SBM Bank Kenya has become the first Kenyan lender to release its first half 2026 earnings, and the numbers set a high bar for the rest of the sector.
Profit before tax jumped 171% to KSh 548 million for the six months ended June 30, up from KSh 202 million in the same period last year. Profit after tax rose 88.2% to KSh 380.17 million, a smaller percentage gain than the pretax figure but still one of the strongest half year turnarounds among Kenyan banks so far this year.
The Numbers Behind the Turnaround
Operating profit nearly quadrupled, rising 279% to KSh 852 million. Net interest income grew 18.5% to KSh 2.18 billion, while non interest income climbed 43.7% to KSh 1.40 billion, fuelled by higher customer activity and transaction volumes. Total operating income rose 35%, comfortably outpacing the 12% growth in operating expenses and generating real operating leverage even as the bank kept investing in technology and infrastructure.
Table: SBM Bank Kenya H1 2026 Performance at a Glance
| Metric | H1 2026 | Change |
|---|---|---|
| Profit before tax | KSh 548 million | +171% |
| Profit after tax | KSh 380.17 million | +88.2% |
| Operating profit | KSh 852 million | +279% |
| Net interest income | KSh 2.18 billion | +18.5% |
| Non interest income | KSh 1.40 billion | +43.7% |
| Customer deposits | KSh 94.0 billion | +24% |
| Net loans and advances | KSh 54.1 billion | +18% |
| Total assets | KSh 109.9 billion | — |
| Gross NPL ratio | 17.3% | Down from 32.4% |
| Loan loss provision charge | — | +69.3% |
The gain came despite a 69.3% increase in the loan loss provision charge, a cost the bank absorbed while still posting its strongest earnings growth in years. That combination, rising provisions alongside sharply improving profitability, points to a bank cleaning up its loan book rather than simply cutting corners on risk.
Asset Quality Improved Sharply
Net loans and advances grew 18% to KSh 54.1 billion, supporting households and businesses across Kenya. More striking was the improvement in loan quality: the gross non performing loan ratio fell to 17.3% from 32.4% a year earlier, nearly halving in twelve months. Total assets rose to KSh 109.9 billion, and capital and liquidity stayed comfortably above Central Bank of Kenya regulatory requirements.
What the CEO Said About the Strategy Behind the Numbers
SBM Bank Kenya Chief Executive Officer Bhartesh Shah framed the results as validation of a longer term rebuild rather than a single strong quarter.
“These results are about far more than stronger profitability. They demonstrate the continued strengthening of our institution. Over the past two years, we have deliberately focused on building a bank with higher quality earnings, disciplined risk management, a resilient balance sheet and the agility to respond quickly to our customers’ evolving needs,” Shah said.
He pointed to the growth in customer deposits, up 24% to KSh 94 billion, as evidence that the strategy is landing with customers, not just showing up in the financial statements.
“The continued growth in customer deposits is particularly encouraging because it reflects trust. Customers choose banks they believe are financially strong, well governed and committed to supporting them over the long term,” Shah said.
Two Years of Rebuilding, Not One Quarter of Luck
Management frames the H1 2026 results as another milestone in a two year strategy to strengthen every part of the franchise, from earnings quality and balance sheet resilience to customer experience and the technology capabilities needed for sustainable growth. Deposit growth alone has run at roughly 66% over that two year window, a pace that suggests the improved numbers reflect a genuine shift in how the market views the bank rather than a one time accounting boost.
That distinction matters heading into the rest of the year. A bank that grows deposits because customers trust it, while simultaneously cutting its bad loan ratio in half, has built something more durable than a single strong earnings season. Whether SBM Bank Kenya can sustain both trends through the second half of 2026 will show whether this turnaround has staying power or simply caught a favourable moment.
