SBM Bank Kenya posted an 88.1 percent increase in net profit to Sh380.1 million in the half-year ended June 2026, helped by lower deposit costs and higher income from transactions.
The lender had posted a net profit of Sh202 million in the corresponding period last year. SBM's non-interest income, including transaction fees, increased by Sh426.4 million to Sh1.4 billion.
The bank also paid Sh3.2 billion in interest expenses to depositors during the review period, down from Sh3.5 billion a year earlier.
This boosted its net interest income—the difference between interest earned on loans and interest paid to depositors—by Sh340.2 million to Sh2.17 billion.
"Income growth was broad-based. Net interest income increased to Sh2.2 billion, while non-funded income grew … driven by higher customer activity and transaction volumes," SBM said in a statement.
"The bank has focused on improving earnings quality, strengthening its balance sheet and risk profile, enhancing customer experience and investing in the capabilities required for sustainable growth."
SBM said the growth in transactions was supported by the expansion of technology-driven services.
These include enhanced Mastercard functionality, continued development of the Busara Kids Banking App, expansion of the SBM Loyalty Programme and free PesaLink transfers of up to Sh1 million through the Mfukoni mobile and online banking platforms.
"These investments reflect the bank's belief that technology is not simply an operational necessity, but a strategic enabler of better customer outcomes, greater resilience and sustainable long-term growth," the lender said.
Income from loans declined marginally to Sh3 billion from Sh3.05 billion, despite increased lending, reflecting the impact of lower interest rates during the review period.
The Central Bank Rate (CBR), which influences the cost of credit, has fallen from 10.75 per cent in February 2025 to the current 8.75 per cent.
