HF Group CEO Robert Kibaara./COURTERSYHF Group PLC has posted a remarkable 112 per cent year-on-year increase in its pre-tax profit for the first quarter of 2025, signalling the success of its ongoing transformation and diversification strategy.
The Group’s Profit Before Tax (PBT) rose to Sh337 million, up from Sh159 million in Q1 2024.
The sharp rise in earnings was underpinned by a 33 per cent growth in total income, which climbed to Sh1.41 billion from Sh1.06 billion in the previous year.
Net interest income saw a robust 46 per cent increase, while non-funded income contributed 30 per cent of total revenues, fueled by higher earnings from fees and commissions, custodial services, and income generated by the Group’s property and insurance subsidiaries.
“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,” said HF Group CEO Robert Kibaara while releasing the results.
Mr. Kibaara also highlighted the successful completion of a rights issue earlier this year, which was oversubscribed by 38 per cent.
This exercise significantly boosted the Group’s capital position and reinforced investor confidence.
“The successful rights issue... has enhanced our capital position, allowing us to power growth as we innovate to meet customer needs,” he stated.
The strong financial performance was also reflected in the Group’s key balance sheet metrics.
Deposits increased by 16 per cent to Sh51.0 billion, indicating growing trust and market traction. The Group’s total assets rose by 18 per cent, reaching Sh73.4 billion.
Liquidity levels remained robust at 45.1 per cent, well above the regulatory minimum of 20 per cent, providing a strong buffer for operations and future expansion.
Additionally, the Group’s core capital to risk-weighted assets stood at 21.3%, more than double the required 10.5 per cent, reflecting strong capitalisation and the capacity to support further business growth.
Operating expenses rose by 19.1 per cent to Sh1.08 billion.
This increase was largely attributed to deliberate investments in talent acquisition and enhancements to digital infrastructure—moves aimed at supporting the Group’s growth agenda and strengthening service delivery.
At the same time, provisions for expected credit losses declined by 8.0 per cent. This reduction is seen as a result of better management of non-performing loans and an improved collections framework, pointing to enhanced asset quality and credit discipline.
The Group’s performance comes just months after it was added to the MSCI Frontier Markets Small Cap Index in February 2025.
This inclusion marks an important milestone and is expected to boost visibility among global investors tracking emerging and frontier markets.
HF Group, which began as a mortgage financier, has since evolved into an integrated financial services provider with operations across personal, business, and institutional banking. It also has interests in property, insurance, trade finance, and diaspora banking.
The company underwent a major restructuring and rebranding in 2015, transforming from Housing Finance into HF Group—a non-operating holding company with four subsidiaries: HFC, HFDI, HF Bancassurance Intermediary (HFBI), and HF Foundation.
Today, the Group continues to deepen its footprint through strategic investments and a focus on long-term value creation.
“This performance underscores the resilience of our business and the opportunities that lie ahead as we build a more diversified and digitally empowered financial institution,” said Mr. Kibaara.
As the financial sector continues to navigate a rapidly evolving economic landscape, HF Group’s strong Q1 results place it in a favourable position to capitalise on emerging opportunities and contribute meaningfully to Kenya’s broader economic goals
