SBM Bank Kenya’s pretax profit rose 122% to KSh911 million in the nine months to September, supported by higher interest and non-interest income, deposit growth and a lower non-performing loan ratio, the lender said on Wednesday.
Profit before tax increased from KSh411 million in the same period last year, while operating profit rose to KSh1.3 billion from KSh447 million.
Total income grew 33% to KSh5.444 billion. Net interest income increased 29% to KSh3.443 billion, while non-funded income rose 39% to KSh2.001 billion.
Transactional income climbed 95% and trade finance commissions increased 98%. Operating costs rose 12%, below the growth rate in total income.
Customer deposits increased 29% year-on-year to KSh97.3 billion at September 30, while net loans and advances grew 23% to KSh56.5 billion.
The non-performing loan ratio declined to 16.9% from 32.3% a year earlier and 17.3% at the end of June.
The bank recorded a net impairment charge of KSh418 million during the period as it continued provisioning for credit risks and writing down troubled loans.
Loans underwritten since May 2024, when Chief Executive Officer Bhartesh Shah took office, had a non-performing loan ratio of 1%, the bank said.
“We are working on the legacy loan book while building a healthier portfolio for the future,” Shah said.
The lender has completed an upgrade of its core banking system to Oracle FLEXCUBE 14.8 and migrated to the iCUST loan-origination platform. It said the focus was now on improving service delivery, credit decisions and productivity.
SBM Bank Kenya is part of Mauritius-based SBM Group and began operating in Kenya in 2017.
