SBM Bank Kenya has reported its first quarterly profit in a year, reversing a string of losses that saw the lender close 2024 with a net deficit of Sh1.07 billion. Unaudited results for the three months ended 31 March 2025 show a net profit of Sh212 million, buoyed by stronger interest income and lower loan‑loss provisions.
Total interest income rose 14 percent to Sh3.8 billion, helped by a modest expansion of the loan book and higher yields on government securities.
At the same time, the bank cut its impairment charge to Sh290 million, less than half the Sh650 million set aside in the comparable period last year, after what management described as “targeted recoveries and tighter underwriting.”
Operating expenses were broadly flat at Sh2.4 billion, reflecting what the bank called a “pause” on new branch expansion and continued migration of customers to digital channels.
Non‑interest income edged up 6 percent to Sh742 million, supported by foreign‑exchange trading and a rebound in fees from trade‑finance customers.
Chief executive Moezz Mir said the turnaround validates the restructuring plan launched late last year.
“We set out to clean the loan book, streamline our cost base, and re‑energize our revenue lines. The first‑quarter numbers show we are on the right path, though we are keenly aware that consistency over the next three quarters will be the real test,” he told investors on a post‑results call.
SBM Bank Kenya, a subsidiary of Mauritius‑based SBM Holdings, entered the local market in 2017 and later absorbed certain assets of the collapsed Chase Bank.
Analysts say the group still faces legacy pressures from those acquired loan portfolios but welcome the return to profitability as a sign the worst may be over.
The lender’s capital adequacy ratio stood at 18.4 percent, comfortably above the statutory minimum of 14.5 percent, while its liquidity ratio improved to 38 percent from 34 percent a year earlier.
Management did not give guidance on dividend prospects, indicating that retained earnings will be used to support further balance‑sheet growth.
Shares of SBM Holdings, which trade on the Stock Exchange of Mauritius, closed 1.8 percent higher following the announcement
