HF Group Posts Ksh 337 Million Pre-Tax Profit For Q1 2025, Posts 112% Year-On-Year Growth

Key Numbers

The Group PBT profit up by 112%, reaching KES 337 million, up from KES 159 million in Q1 2024.

33% growth in total income to KES 1.41 billion, with net interest income rising by 46% y-o-y.

Operating expenses rose by 19.1% to KES 1.08 billion.

Provisions for expected credit losses declined by 8.0%.

Total deposits grew by 16% to KES 51.0 billion.

18% growth of the Group’s balance sheet to KES 73.4 billion.

Core capital to Risk-Weighted Assets closed at 21.3%, against a regulatory minimum of 10.5%.

Liquidity remained strong at 45.1%, more than double the statutory minimum of 20%.

The Performance

Listed local financial solutions provider, HF Group, has posted a whopping 112 percent year-on-year growth in Q1 2025 Profit Before Tax (PBT) reaching 337 million shillings, up from 159 million shillings in Q1 2024.

The Group’s total income rose by 33 percent to 1.41 billion shillings, up from 1.06 billion shillings in the same period last year. This growth was driven by a robust 46 percent increase in net interest income and a notable contribution from non-funded income, which accounted for 30 percent of total revenues. Key drivers included increased earnings from fees and commissions, custodial services and income from the Group’s property and insurance subsidiaries.

Read Also: 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 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 percent, has enhanced our capital position, allowing us to power growth as we innovate to meet customer needs.” Stated Mr. Kibaara.

Here is the performance:

The Group’s total deposits rose by 16 percent to 51.0 billion shillings, reflecting strong market confidence following the recent rights issue. The balance sheet grew by 18 percent to 73.4 billion shillings, while the liquidity ratio remained solid at 45.1%, more than double the regulatory minimum.

The core capital to risk-weighted assets ratio closed at 21.3 percent, significantly above the required 10.5%, underscoring the Group’s strong capital base and capacity for future growth.

Operating expenses increased by 19.1 percent to 1.08 billion shillings, attributed to strategic investments in talent acquisition and digital infrastructure. Meanwhile, provisions for expected credit losses declined by 8.0 percent, reflecting effective management of non-performing loans and an improved collections framework.

Read Also: HF Group Posts Ksh 525 Million Full Year Net Profit