HF Group has kicked off 2025 on a high note, posting a pre-tax profit of KES 337 million for the first quarter, an impressive 112% increase compared to KES 159 million recorded during the same period in 2024.
This strong performance showcases the effectiveness of the Group’s transformation journey and growing confidence in its diversified business model.
The Group’s total income rose by 33% to KES 1.41 billion, up from KES 1.06 billion in Q1 last year. Indicated is a key driver behind this growth, a 46% surge in net interest income, supported by a solid contribution from non-funded income, which now accounts for 30% of total revenues. The non-interest income was boosted by gains from fees and commissions, custodial services, as well as the performance of HF Group’s property and insurance subsidiaries.
CEO Robert Kibaara, while releasing the financial results, credited the significant growth to the Group’s ongoing strategy to diversify its revenue streams and strengthen operational efficiency.
“We continue to realize the impact of our transformation journey,” he noted. “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.”
HF CEO Robert Kibaara
Investor confidence in the Group appears to be on the rise, as reflected in a 16% growth in total deposits to KES 51.0 billion. At the same time, HF Group’s balance sheet expanded by 18% to KES 73.4 billion. Liquidity remained robust at 45.1%, more than double the statutory minimum of 20%, indicating strong short-term financial health.
In terms of regulatory compliance and long-term stability, the Group reported a core capital to risk-weighted assets ratio of 21.3%, far above the Central Bank’s minimum requirement of 10.5%. This indicates a strong capital buffer that positions the institution for continued growth and resilience amid evolving market dynamics.
Operationally, the Group’s expenses rose by 19.1% to KES 1.08 billion, largely driven by strategic investments in talent acquisition and digital infrastructure. However, in a sign of prudent risk management, provisions for expected credit losses fell by 8.0%, reflecting an improvement in asset quality and more effective recovery processes.
With its transformation strategy bearing fruit, HF Group is entering the rest of the year with momentum, confidence, and a renewed commitment to delivering value across its banking, property, and insurance businesses.
