HFCB Group (formerly HF Group Plc) posted a group profit after tax of KES 475.5 million for the three months ended 31 March 2026, a 45% increase from KES 327.9 million in Q1 2025, according to unaudited financial statements released to the market.
Group total operating income rose 30% year-on-year to KES 1.83 billion, up from KES 1.41 billion, driven by strong growth in both funded and non-funded income streams.
HFCB Q1 2026: Deposits and Securities Drive the Numbers.
Customer deposits jumped 31% to KES 65.5 billion from KES 50.1 billion a year earlier, pushing total group assets to KES 90.5 billion, up 23% year-on-year.
A significant portion of the fresh deposits was deployed into government paper. HFCB’s available-for-sale securities portfolio nearly doubled to KES 30.0 billion from KES 17.4 billion, with income from government securities rising 49% to KES 886.4 million in the quarter.
Net interest income expanded 28% to KES 1.27 billion, supported by flat interest expenses despite the larger deposit base, a sign that the funding mix is shifting favourably towards lower-cost accounts.
Non-interest income at the group level grew to KES 569.1 million from KES 425.0 million in Q1 2025. The standout was other income, which captures contributions from HFCB’s insurance and property businesses, rising to KES 395.1 million from KES 244.8 million.
Gross non-performing loans fell to KES 10.96 billion from KES 11.96 billion a year ago. Net NPL exposure, after provisions and interest in suspense, declined to KES 7.88 billion from KES 8.62 billion. Discounted collateral fully covers the net NPL position, leaving zero uncovered exposure on the HFCB balance sheet.
HFCB Group’s core capital ratio stood at 21.6%, more than double the CBK’s minimum of 10.5%. The liquidity ratio hit 56.6%, well above the 20% statutory floor, reflecting the large government securities portfolio and continued deposit inflows.
Group earnings per share for Q1 2026 came in at KES 0.25, up from KES 0.14 in Q1 2025, representing a 79% year-on-year improvement.
HFCB Group rebranded from HF Group Plc in May 2026, consolidating its banking, insurance, and property operations under a unified identity. The NSE ticker remains HFCK.
