We investigate the nonlinear reflection of a light beam from a Kretschmann configuration with saturable absorbing medium. The absorption of medium has direct influence on the intrinsic loss of the system, thus affecting the reflectivity and the phase variation when the surface plasmons are resonantly excited. As the incident power changes, the reflectivity can be switched between high and low values and exhibits absorptive optical bistability as a result of the inherent positive feedback by the intensity-dependent saturation effect. The Goos-Hänchen and the Imbert-Fedorov shifts of the reflected beam have the same bistable behavior as the reflectance. The effects of the thickness of metal film and the linear absorption coefficient on the hysteresis loop are analyzed in detail by considering the system losses and the saturated absorption. The bistable reflection and beam shifts may have applications in all-optical devices, such as optical switching.