HF Group Q3 Profit Before Tax Hits Ksh1.14B in Major Turnaround

HF Group has announced a major jump in earnings, posting Ksh 1.14 billion in profit before tax. This is a 265 per cent rise from what it recorded during the same period last year.

Profit after tax also increased to Ksh 988.7 million, more than double the Ksh 483.5 million posted in 2024.

The integrated financial solutions provider said the impressive results were driven by lower funding costs and higher income from both interest and non-funded streams.

The Group’s diversification strategy has also played a key role, with all subsidiaries reporting stronger performance.

CEO Robert Kibaara highlighted the steady growth, saying: “The Group is on a growth trajectory and our business is growing strongly across all our three subsidiaries. Our diversification strategy is yielding results, and the growth engines we have created over the last few years are now all scaling well.”

The Group’s balance sheet has continued to strengthen. Its asset base rose by 22 per cent to Sh80 billion, while customer deposits expanded by 20 per cent to Ksh 55 billion. Operating income grew by 52 per cent, non-funded income went up by 29 per cent, and net interest income increased by 63 per cent.

HF Group closed the period with a liquidity ratio of 54.2 per cent, more than double the regulatory minimum. Its capital-to-risk-weighted assets ratio reached 21.9 per cent, comfortably above the required threshold.

Kibaara said the company will keep focusing on improving customer experience and expanding digital services.

“We have a well-capitalised business, and we are delivering value propositions that are relevant to customers. We will continue to invest in customer value propositions and digitisation to increase opportunities for customers to self-serve. Further, we have reduced our base lending rate twice this year to support our customers.”

The company is celebrating 60 years since it started operations in 1965. Earlier this year, it was added to the Morgan Stanley Frontier Markets Small Cap Index, a development that signals growing investor interest in the Group.

Its banking arm, HFC, was upgraded to a tier two bank this year after strengthening its capital position and expanding its market share.

HF Group also benefited from last year’s oversubscribed rights issue, where shareholders offered Sh6.4 billion against a target of Ksh4.6 billion.

HF Group has evolved from a mortgage lender into a comprehensive financial services provider, offering a range of banking, property, and insurance solutions.

The transition was formalised in 2015 when Housing Finance restructured into HF Group, creating several subsidiaries, including HFC, HFDI, HFBI and HF Foundation.

On the stock market, HF Group has had a strong run. Its share price has risen 122 per cent since the beginning of the year. It is also one of the most heavily traded counters on the Nairobi Securities Exchange, moving 73.8 million shares worth Ksh 789 million in the last three months.