Listed local financial solutions provider, HF Group Plc, has posted an impressive 112% year-on-year growth in Q1 2025 Profit Before Tax (PBT), reaching KES 337 million, up from KES 159 million in Q1 2024. This remarkable growth underscores the Group’s successful transformation strategy and strong financial fundamentals.
The Group’s total income surged by 33% to KES 1.41 billion, compared to KES 1.06 billion in the same period last year. This growth was primarily driven by a 46% increase in net interest income, reflecting improved lending activity and favorable interest rate dynamics. Additionally, non-funded income contributed significantly, accounting for 30% of total revenues, with key drivers including fees and commissions, custodial services, and income from the Group’s property and insurance subsidiaries.
Comparing this to Q1 2024, HF Group had reported a 17.7% increase in total operating income, reaching KES 1.1 billion, with net interest income growing by 7.6%. The 40.7% growth in non-funded income last year highlights the Group’s continued focus on revenue diversification.
HF Group CEO Robert Kibaara, while releasing the results, 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 realize 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 by 38%, has enhanced our capital position, allowing us to power growth as we innovate to meet customer needs.” — Robert Kibaara, CEO, HF Group
HF Group Performance Overview
HF Group’s total deposits rose by 16% to KES 51.0 billion, reflecting strong market confidence following the recent rights issue. The balance sheet expanded by 18% to KES 73.4 billion, while the liquidity ratio remained solid at 45.1%, more than double the regulatory minimum of 20%.
In comparison, Q1 2024 saw a 6.2% increase in customer deposits, reaching KES 43.8 billion, while the balance sheet grew by 5.6% to KES 62.3 billion. The liquidity ratio stood at 24.9%, showing a significant improvement in 2025.
The core capital to risk-weighted assets ratio closed at 21.3%, significantly above the required 10.5%, underscoring the Group’s strong capital base and capacity for future growth. This is a notable improvement from Q1 2024, where the ratio stood at 14.5%, reflecting the impact of the rights issue and strategic capital management.
Operating expenses increased by 19.1% to KES 1.08 billion, attributed to strategic investments in talent acquisition and digital infrastructure. Meanwhile, provisions for expected credit losses declined by 8.0%, reflecting effective management of non-performing loans and an improved collections framework.
In contrast, Q1 2024 saw an 11.2% increase in total operating expenses, reaching KES 0.9 billion, while loan loss provisions declined by 7.2%. The continued decline in credit loss provisions highlights HF Group’s strengthened risk management framework.
Also Read: HF Group Profits at KES 525 Million Posts Solid Growth in 2024
