HF Group has reported a 35% increase in net profit for the full year 2024 to KES 525 million, up from KES 388 million in FY2023.
- •The Nairobi listed financial solutions provider is transitioning into a fully-fledged commercial bank, diversifying beyond its traditional mortgage financing business.
- •Management alluded that it will soon be in a position to issue dividends in the near future given the steady progress that has been made.
- •“Our recent rights issue has bolstered our core capital and given the business the leverage to accelerate growth, enhance efficiency through technology and build business propositions that deliver and exceed our customers’ expectations,” HF Group CEO Robert Kibaara stated during the earnings announcement.
Financial Highlights
- •Net Profit: KES 525 million, a 35% increase year-on-year.
- •Non-Funded Income: Grew 21% to KES 1.51 billion, driven by FX income and property subsidiary fees.
- •Total Interest Income: Increased 23% to KES 6.41 billion.
- •Total Assets: Expanded 14% from Kes 61.55 billion to Kes 70.15 billion.
- •Customer Deposits: Up 9% to KES 47.86 billion, reflecting improved customer confidence.
- •Core Capital Ratio: Jumped from 10.5% to 21.4%, following a 38% oversubscribed rights issue.
- •Liquidity Ratio: Rose to 41.8%, well above the 20% regulatory requirement.
Insights
HF Group’s performance was largely driven by a 21.2% rise in non-funded income and a 4.4% increase in net interest income to KES 2.7 billion.
Sterling Capital, a Nairobi-based brokerage, highlighted the impact of the rights issue and capital injection, which enhanced capital adequacy and positioned HF Group for aggressive lending expansion. “HF Group’s core capital ratio has more than doubled to 21.4%, giving it a strong foundation to grow its loan book and increase market share,” a Sterling Capital stated.
Despite a 17.8% rise in loan loss provisions due to an increase in non-performing loans (NPLs) to 23.5%, the Group said it had strengthened risk management practices and is leveraging digital banking solutions to enhance credit assessment and recovery efforts.
Going forward, HF Group plans to accelerate its corporate and SME lending business, expand its digital banking ecosystem, and enhance operational efficiency.
“With our stronger capital base and diversified product portfolio, we are well-positioned to unlock new growth opportunities and deliver sustained shareholder value.” CEO Robert Kibaara.
RELATED;
HF Group Rights Issue Oversubscribed by 38.32%
HF Group Rings Bell on NSE After Oversubscribed Rights Issue
