HFCB Group Pre-Tax Profit Surges 74% To KES1.22 Billion

Listed integrated financial and property solutions provider HFCB Group has reported a 74% jump in profit before tax to KES1.22 billion for the six months ended June 2026, up from KES703 million in the corresponding period in 2025.

The group’s performance was driven by strong revenue growth, rising customer deposits and tighter cost management during the period.

Key Highlights

• Profit Before Tax grew by 74% to KES 1.22 billion from KES 0.70 billion.
• Total operating income increased by 32% to KES 3.80 billion.
• Net interest income grew by 29% to KES 2.64 billion
• Non-funded income grew by 37% to KES 1.16 billion
• Total deposits grew by 31% to KES 68.97 billion.
• Total assets increased by 22% to KES 94.04 billion.
• Liquidity ratio stood at 54.4%, more than double the regulatory minimum.
• Core capital ratio closed at 20.7%, well above regulatory requirements.
• Core capital is at KES 10.5 billion, already ahead of the 2029 minimum requirement as per the revised regulatory requirements.

“These results reflect the disciplined execution of our strategy, with strong growth across both funded and non-funded income while maintaining a firm focus on efficiency. We are building a more diversified and resilient earnings base that positions our business for sustainable growth,” said HFCB Group Chief Executive Officer, Robert Kibaara.

The Group’s total operating income rose by 32% year-on-year to KES3.8 billion, supported by a 29% increase in net interest income to KES2.64 billion and a 37% rise in non-funded income to KES1.16 billion.

The growth in non-funded income was driven by increased transaction volumes, fees and diversification of revenue streams, providing the Group with a broader earnings base amid a changing interest-rate environment.

At the same time, operating costs increased by a moderate 18%, largely reflecting investment in human resources as HFCB expanded its frontline workforce to support business growth.

The Group’s balance sheet also expanded significantly during the period, with total assets growing by 22% to KES94.04 billion.

Customer deposits increased by 31% to KES68.97 billion, reflecting continued customer confidence and the strength of HFCB’s funding franchise.

“This is a strong indicator of the confidence customers have in our value proposition. At the same time, we recorded a reduction in our cost of deposits, demonstrating that we are growing our funding franchise efficiently,” said Kibaara.

The Group also reduced its cost of deposits by 68 basis points, signaling an improved funding mix and greater balance sheet efficiency.

HFCB maintained a strong liquidity ratio of 54.4%, well above the regulatory minimum of 20%, while its core capital-to-risk-weighted assets ratio stood at 20.7%, above the regulatory minimum of 10.5%.

The Group’s core capital has now surpassed KES10 billion, allowing it to meet revised regulatory capital thresholds four years ahead of the 2029 deadline.

“Surpassing KES10 billion in core capital four years ahead of the regulatory deadline underscores our capacity to generate capital organically and provides a strong foundation for continued balance sheet growth. Our liquidity and capital buffers give us the resilience to pursue opportunities while maintaining prudent risk management,” said Kibaara.

The performance comes as financial institutions continue to strengthen balance sheets, diversify revenue and improve operational efficiency in an increasingly competitive macroeconomic environment.

HFCB said the first half performance reinforces its focus on sustainable growth, customer value and financial resilience while continuing to invest in the people and capabilities required to support expansion.

Read Also: HF Group Posts Ksh 1.61 Billion Pre-Tax Profit in FY 2025, a 250% Year-on-Year Growth