Smite reads “heal allies around the target for 20”, but heals you also.
The Soothing Balm node correctly doesn’t work on you.
Tested on dummy with Exsanguinous equiped and no leech/life on hit/Time and Faith passive to be sure that I had no other healing source.
So, tooltip error or bug ? 
Did you take the VK passive that converts Smite to void & turns off the healing?
Forgot to mention it, but nope.
Do you have the Titan Heart chest or Avarice gloves equipped (turns off your regen)?
Nope. only tried it with Exsanguinous to stay at a “stable” low life to check the healing on Smite.
Well I’m out of ideas then…
Would you mind posting a pic of your Smite tree (Imgur.com is your friend)?
You count as your own ally mechanically, so Smite’s base functionality is working as intended.
However, Soothing Balm isn’t working at all. Thanks for the report!
P.S.
I would argue that a tooltip error is also a bug, but that’s besides the point 
But that’s not how any of the other “ally” nodes work (unless they state “yourself & allies”)!
Could you give examples? It’s definitely possible that we need to take a pass on standardizing the wording used.
For Paladin I noticed :
Holy Aura : “You and Nearby Allies” in spell description and nearly all nodes are “you and your allies”.
Sigils of Hope : “You and your allies” in spell description and also a lot of nodes.
Judgement : “[…]Allies in the Consecrated Grounds” in spell description, a lot of nodes are “Allies” or “Nearby allies”, except for Cleansing Light wich is “On you and allies”. All seems to work on you.
Ring of Shields : the nodes “Healing Shield”, “Phalanx” and “Sturdy Shields” are all “Nearby allies” or “Allies” and work for you as well.
Shield Throw’s Aegis node doesn’t concider the player an ally, since the skill returns to you rather than continuing to bounce on for it’s remaining ricochets.
Sigils of Hope Well of Light node “Divine Flare also heals nearby allies within it’s range” heals the player.
Judgement’s “Destructive Impact” node (“Consecrated Ground heals allies and damages enemies in a larger area”), heals the player.
Judgement’s Holy Eruption node (When consecrated ground finishes, it casts Holy Eruption, dealing 30 fire damage to all nearby enemies and healing all nearby allies for 50 health) heals the player.
Ring of Shields Healing Shields, Phalanx, Sturdy Shields all refer to allies, which is ok since the shields are minions (& you are an ally of your minions), however since the Sentinel is not an obvious minion class this may confuse people & they may think that Ring of Shields is a normal spell rather than a summon.
Abyssal Echoes Lightbringer node refers to allies but heals the player as well.
Aura of Decay’s Absence of Life node only refers to allies but heals the player as well.
Entangling Roots Imbued Sap, Nourish & Bountiful Harvest nodes only refers to allies but affect the player.
Is all the skills I could find when searching for “allies”, I didn’t try “ally” though…
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