HF Group Reports Strong Financial Growth In FY 2024 As They Focus On The Future With A Strong Endorsement Via The 2024 Rights Issue

HF Group Plc has announced impressive financial results for the fiscal year 2024, showcasing remarkable growth across key financial metrics. The company, which continues to strengthen its position in Kenya’s financial sector, posted a 35% increase in profit after tax, reaching KES 525 million from KES 388 million in the previous year. This substantial growth highlights the company’s strategic focus on revenue diversification and improved operational efficiency.

One of the standout achievements in the financial year was a 23% rise in total interest income, which surged from KES 5.20 billion to KES 6.41 billion. This growth was driven by increased lending activities and effective interest rate management. Additionally, non-funded income, a crucial component of HF Group’s revenue stream, recorded a 21% increase, reaching KES 1.51 billion. This signifies a strong performance in areas such as fees, commissions, and other non-interest income streams, reinforcing the company’s efforts to diversify beyond traditional lending.

Another major contributor to the company’s stellar performance was the significant rise in income from government securities, which jumped by 38% to KES 1.58 billion. This reflects HF Group’s prudent investment strategies in risk-free assets, ensuring a steady and reliable revenue stream. Consequently, total operating income rose by 10% to KES 4.17 billion, demonstrating the company’s ability to optimize its revenue base despite economic headwinds.

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The company’s balance sheet also exhibited robust growth, with total assets expanding by 14% to KES 70.15 billion from KES 61.55 billion in the previous financial year. This growth was mirrored by a 9% rise in total deposits, which increased from KES 43.85 billion to KES 47.86 billion, indicating strong customer confidence in the institution. Such growth in deposits further strengthens the bank’s liquidity and lending capacity, positioning it favorably for future expansion.

HF Group’s core capital ratio saw a remarkable improvement, growing fourfold from 5.3% to 21.4%. This substantial increase highlights the company’s improved financial stability and compliance with regulatory capital requirements, reinforcing investor confidence. Additionally, the liquidity ratio rose from 24.5% to 41.8%, a 1.7 times increase, underscoring the institution’s strong ability to meet its short-term obligations while maintaining healthy cash reserves.

The impressive performance of HF Group has not gone unnoticed in the stock market. Following the release of the financial results, the company’s share price jumped to KES 7.50 per share at market open, reflecting investor optimism and confidence in HF Group’s growth trajectory. As the company continues to enhance its service offerings and optimize its financial strategies, its strong FY 2024 performance sets a promising foundation for sustained growth and profitability in the coming years.

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