Listed local financier–HF Group has more than doubled its quarter one profit to Sh327.9 million in 2025, mainly driven by interest and non-funded incomes.
This is a 118.2 per cent year-on-year growth when compared to the Sh150.3 million reported in a similar last year. Profit before tax for the period reached Sh337 million, up from Sh159 million in Q1 2024.
The Group’s total income rose by 33 per cent to Sh1.41 billion, up from Sh1.06 billion in the same period last year.
This growth was driven by a robust 46 per cent increase in net interest income and a notable contribution from non-funded income, which accounted for 30 per cent of total revenues.
Key drivers included increased earnings from fees and commissions, custodial services and income from the Group’s property and insurance subsidiaries.
Last year’s successful rights issue, oversubscribed by 38 per cent, enhanced capital position for HF Group, which has reported an 18 per cent growth on its balance sheet to Sh73.4 billion.
The December rights issue saw shareholders offer the company Sh6.4 billion in the cash call whose proceeds were to be used to buffer its capital levels ahead of new rules requiring banks to raise their core capital.
The lender had offered 1.153 billion shares in the issue seeking Sh4.6 billion, but received applications for 1.596 billion units.
HF Group CEO Robert Kibaara yesterday attributed the strong performance to the Group’s ongoing transformation and diversification strategy, highlighting growth in business banking, property and custodial services.
“We continue to realise the impact of our transformation journey. Our business model has evolved significantly, enabling us to deliver sustainable growth and value to our shareholders. Further, the successful rights issue, which was oversubscribed, has enhanced our capital position, allowing us to power growth as we innovate to meet customer needs,” Kibaara said.
The Group’s total deposits rose by 16 per cent to Sh51.0 billion, reflecting strong market confidence following the recent rights issue. Liquidity ratio remained solid at 45.1 per cent, more than double the 20 per cent regulatory minimum.
The core capital to risk-weighted assets ratio closed at 21.3 per cent significantly above the required 10.5 per cent, underscoring the Group’s strong capital base and capacity for future growth.
Operating expenses however increased by 19.1 per cent to Sh1.08 billion, attributed to strategic investments in talent acquisition and digital infrastructure.
Meanwhile, provisions for expected credit losses declined by eight per cent, reflecting effective management of non-performing loans and an improved collections framework.The lender’s loan book closed the three-month period at Sh38.9 billion up from Sh38.1 billion same period last year.
