HF Group Plc has posted a profit before tax of KES 1.14 billion, marking a 265% increase compared to a similar period in 2024. This impressive performance is attributed to a significant reduction in the cost of funds, alongside notable growth in both interest income and non-funded income. The Group’s diversification strategy continues to bear fruit, with all subsidiaries registering improved profitability.
Commenting on the results, HF Group CEO Robert Kibaara stated: “The Group is on a strong growth trajectory, with our business expanding across all three subsidiaries. Our diversification strategy is yielding results, and the growth engines we have built over the past few years are now scaling effectively.”
The Group’s asset base grew by 22% to KES 80 billion, while total deposits increased by 20% to KES 55 billion, reflecting enhanced customer confidence and operational momentum. Operating income rose by 52%, non-funded income by 29%, and net interest income surged by 63%, driven by higher yields and optimized lending operations.
HF Group Plc’s Financial Ratios
HF Group also maintained a robust liquidity ratio of 54.2%, more than double the regulatory minimum of 20%, ensuring strong financial flexibility. The capital-to-risk-weighted assets ratio closed at 21.9%, significantly above the required 10.5%, underscoring the Group’s solid capital position and prudent risk management.
“We are a well-capitalized institution delivering value propositions that resonate with our customers. We continue to invest in customer-centric solutions and digitization to enhance self-service capabilities. Additionally, we have reduced our base lending rate twice this year to support our customers during challenging economic times.” – HF Group CEO Robert Kibaara.
As HF Group celebrates its 60th anniversary, it has achieved several strategic milestones. Earlier this year, the Group was added to the Morgan Stanley Frontier Markets Small Cap Index, a prestigious benchmark for investors tracking emerging markets. Furthermore, its banking subsidiary, HFC, was recently elevated to Tier II status, reinforcing its competitive position in Kenya’s financial sector.
Also Read: HF Group Plc FY2024 Performance Analysis: A Strategic Turnaround on a Solid Trajectory
