HF Group has turned around from loss-making to posting a profit before tax of Ksh77.3 million for the first nine months of 2022. This is as compared to a loss of Ksh25.4 million during a similar period in 2021.
This performance comes on the back of a diversified business model and a water-tight risk management framework, according to the lender.
The Group’s interest income grew by Ksh202 million while interest expense grew by Ksh10.6 million.
Total deposits grew by Ksh1.2 billion.
Interest-earning assets grew by Ksh3.4 billion while the average yield on these assets also improved year on year to 10.0% from 9.4% in September 2021.
“Our business transformation strategy remains on track, with positive delivery in all areas. We have put in place an aggressive non-performing loans resolution that saw this reduce by 6% within a year, paving way for an asset re-allocation phase to support our growth in interest-earning assets and yields,” said HF Group CEO, Robert Kibaara.
The Group’s new full-service banking model saw non-interest income and income from non-bank subsidiaries increase by Ksh300 million.
Foreign exchange income shored up by 40% underscoring the business new grip on the SME market.
The Group’s property development subsidiary grew its revenue by Ksh263 million supported by growth in project management fees and commissions.
“A new revenue frontier in project management has already taken shape,” said Kibaara.
All the subsidiaries remained profitable year to date with the insurance agency subsidiary posting a 43% growth in profit before tax.
“This performance, together with our focus on building on our efficiency, expanded synergies and robust cost control, will put the Group in a stronger position,” Kibaara added.
Read: NSE Struggles To Make Profits For 2022
>>> Co-op Donates Ksh150M After Minting Ksh17B Net Profit in 9 Months
As Hf group celebrates a 77.3 M profit before tax for the past 9 months, Co-op Bank is donating 150M after making a net profit of 17Billion and they are not celebrating.
Someone must be crazy.