HF Group more than doubled its Q3 net profit to KSh 988.7Mn, marking its strongest third-quarter performance in almost ten years and extending a turnaround that follows the losses recorded between 2018 and 2021.
- •The update shows a lender rebuilding its balance sheet and stabilizing its core business after a long period of weak income and high credit strain.
- •Core capital rose to KSh 9.243Bn from KSh 1.696Bn, strengthening the group’s buffer after years of pressure linked to impaired loans and weak retained earnings.
- •Gross NPLs eased to KSh 11.09Bn from KSh 11.46Bn while NPL levels remain high relative to peers, but the small reduction signals early progress in loan clean up efforts.
Net interest income rose to KSh 3.201Bn from KSh 1.960Bn with increase coming from higher loan volumes and a larger investment book. Non interest income grew to KSh 1.295Bn from KSh 1.007Bn as fees and other customer transactions improved. The combined effect pushed operating income to KSh 4.496Bn from 2.967Bn.
Expenses also increased but at a slower pace. Total operating costs rose to KSh 3.357Bn from KSh 2.654Bn. Loan loss charges increased to 300.3Mn from 248.8Mn, reflecting a cautious stance on credit quality. Even with higher costs, the growth in income outweighed pressure points, lifting pre tax profit to 1KSh .139Bn. This is the first time since Q3 2016 that the lender crossed the one billion mark at the nine month point.
| Metric | Q3 2025 | Q3 2024 | YoY |
|---|---|---|---|
| Net Interest Income | 3.201Bn | 1.960Bn | ▲+63.4% |
| Non-Interest Income | 1.295Bn | 1.007Bn | ▲+28.6% |
| Operating Income | 4.496Bn | 2.967Bn | ▲+51.5% |
| Total Operating Expenses | 3.357Bn | 2.654Bn | ▲+26.5% |
| Loan Loss Provision | 300.3Mn | 248.8Mn | ▲+20.7% |
| Profit Before Tax (PBT) | 1.139Bn | 312.3Mn | ▲+264.7% |
| Profit After Tax (PAT) | 988.7Mn | 483.5Mn | ▲+104.6% |
| Total Assets | 79.94Bn | 65.60Bn | ▲+21.9% |
| Total Equity | 17.38Bn | 9.386Bn | ▲+85.2% |
| Customer Deposits | 54.74Bn | 45.00Bn | ▲+21.6% |
| Loans & Advances (Net) | 39.26Bn | 38.20Bn | ▲+2.76% |
| Government Securities | 25.56Bn | 13.16Bn | ▲+94.2% |
| Core Capital (from Bank) | 9.243Bn | 1.696Bn | ▲+445% |
| Gross NPLs | 11.09Bn | 11.46Bn | ▼−3.19% |
| Earnings per Share (EPS) | 0.700 | 1.680 | ▼−58.3% |
HF Group expanded its asset base to KSh 79.94Bn from KSh 65.60Bn. Customer deposits increased to KSh 54.74Bn from KSh 45.00Bn. The loan book almost doubled to KSh 25.56Bn from KSh 13.16Bn as the lender continued to adjust its asset mix toward lower risk instruments.
Earnings per share dropped to KSh 0.700 from KSh 1.680. This was driven by a larger share count following last years rights issue.
The improvement in Q3 extends a recovery trend that started in 2022 after a four year stretch of losses and low profits between 2018 and 2021. Profit has risen each year since 2022, supported by a shift toward interest income, slower growth in operating costs, and a stronger deposit base.
