HFCB (Housing Finance Company of Kenya Bank), an integrated financial services provider, has delivered a stronger half-year performance with its net profits rising to KSh 998.3million and pre-tax earnings up 74.2% to KSh 1.22billion.
This performance has been supported by a 29.4% increase in net interest income to KSh 2.64billion and a 37.4% rise in non-interest income to KSh 1.16billion.
HFCB Financials Highlights:
— Total Assets: 22.3% to KSh 94.0 billion
— Customer Deposits: 29.7% to KSh 68.1billion
— Net Loans: 11.5% to KSh 43.4billion
— Net Interest Income: 29.4% to KSh 2.64billion
— Non-Interest Income: 37.4% to KSh 1.16billion
— Total Operating Income: 31.7% to KSh 3.80billion
— Operating Expenses: 18.1% to KSh 2.58billion
— Loan Loss Provisions: 30.0% to KSh 273.9million
— Gross Non-Performing Loans: Down2.1% to KSh 11.19billion.
— Pre-tax Profit: 74.2% to KSh 1.22 billion
— Profit After Tax: 59.9% to KSh 998.3million
— Shareholders’ Funds: 8.9% to KSh 18.24billion
— EPS: down 19.7% to KSh 0.53
The mortgage lender’s Balance Sheet growth remained strong, with total assets up 22.3% to KSh 94.0B and customer deposits up 29.7% to KSh 68.1billion, while gross non-performing loans declined 2.1% to KSh 11.19billion despite loan-loss provisions increasing 30.0% to KSh 273.9million.
Established in 1965 as Housing Finance Company of Kenya, the mortgage bank has since rebranded to HFCB Group Plc after a TIER II upgrade in 2025, to consolidate its banking, property and bancassurance subsidiaries under one roof.
The Group repositioned itself in May 2026 this year so as to operate under one unified brand name. It has four subsidiaries including HFCB Limited, HFCB Properties Limited, HFCB Bancassurance Intermediary and HFCB Foundation.
Following the successful recapitalization of the Group in 2024 and supported by sustained and deliberate efforts to scale its key engines of growth, the HFCB Group has strengthened its capital position significantly.
Its banking subsidiary, HFCB Limited is now fully compliant with all applicable capital adequacy requirements and is well ahead of the regulatory core capital threshold of KSh 10 billion by 2029.
This milestone reflects the Board’s prudent oversight, the effectiveness of our capital strategy and our commitment to maintaining a resilient balance sheet that supports sustainable growth and long-term value creation.
As the 2022-26 Business Transformation Strategy comes to a close, the Group’s Board Chairperson Prof. Olive M. Mugenda notes in the latest annual report thus, “We remain steadfast in our ambition to build a Top Ten In Ten fully integrated financial services and property group and will continue to deliberately put in place the strategic, operational and governance building blocks required to realize this ambition.”
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