HF Group has announced a remarkable turnaround in its half-year 2025 performance, posting a Profit Before Tax (PBT) of KShs 703 million, a 148% year-on-year growth compared to KShs 283 million in HY 2024. This performance underlines the success of the Group’s ongoing transformation strategy, built on diversification and a focus on sustainable value creation.
The numbers tell a powerful story:
- Net interest income grew by 53% to KShs 2.04 billion, driven by expanding interest-earning assets and prudent cost of funds management.
- Non-funded income rose 18% to KShs 844 million, supported by increased fees from the custody business and property subsidiary project management fees.
- Customer deposits climbed 15% to KShs 52.5 billion, reflecting improved market confidence.
- Balance sheet growth stood at 21%, reaching KShs 76.9 billion, while interest-earning assets expanded by 25% (an equivalent of KShs 12.7 billion).
- Liquidity remained robust at 51.4%, more than twice the regulatory minimum, while the core capital to risk-weighted assets ratio closed at 21.3%, far above the required 10.5%.
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Such performance reinforces HF Group’s ability to navigate a challenging operating environment while maintaining solid fundamentals.
According to Group CEO Robert Kibaara, the results validate HF Group’s transformation agenda:
“Our strong performance is a clear demonstration of the success of our transformation and diversification strategy, which continues to drive growth across our subsidiaries. We remain focused on building a strong and resilient Group that delivers sustainable value to stakeholders.”
The Group’s expansion beyond its traditional mortgage heritage into banking, property, insurance, and custody services is paying dividends. Non-interest revenue streams are becoming increasingly important, giving the Group more resilience and adaptability.
One of the most notable milestones was the upgrade of the Group’s banking subsidiary to a Tier Two bank, cementing its growing market share and strengthened capital base. This recognition not only highlights HF’s stronger financial footing but also signals the success of its shift into full-service banking.
This elevation is a testament to market confidence, capital adequacy, and HF’s ability to compete effectively in an evolving financial sector.
HF Group’s trajectory has not gone unnoticed on the global stage. In February 2025, the Group was added to the MSCI Frontier Markets Small Cap Index, a benchmark closely tracked by international investors. This inclusion reinforces the company’s credibility and signals to investors that HF is a serious contender among frontier market financial institutions.
Looking Ahead
HF Group’s HY 2025 results illustrate how a well-executed strategy can reshape an institution. From strong earnings growth to a fortified balance sheet, the Group has demonstrated that diversification, disciplined capital management, and innovation in new business lines can future-proof a financial institution.
If its current trajectory is anything to go by, the Group is well positioned to deliver long-term value for both customers and shareholders.
