HF Group has reported a significant recovery in earnings, with a net profit of KES 257 million for the year ended on December 31st, 2022, in contrast to a loss of KES 682.7 million recorded in 2021.
The net interest income experienced an increment of KES 347 million, resulting in a total of KES 2.16 billion. In contrast, the interest expenses only rose slightly by 1%, equivalent to KES 15 million.
Interest-earning assets also grew by KES 3.6 billion, with the average yield on these assets improving to 10% from 9.6% in December 2021. Additionally, deposits experienced growth of KES 1.5 billion.
Our performance reflects our relentless focus on our business transformation strategy. Our diversification to full-service banking has seen the Group maintain a flat interest expense line while growing customer deposits and significantly increasing our funded and non–funded income.
HF Group CEO – Robert Kibaara
The Group’s cost optimization program has been successful as demonstrated by a 14% drop (KES 472 million) in total expenses despite a 13% increase in staff costs to support new business segments.
HF Group continues to invest in people and technology to enhance the customer experience, which has contributed to a 182% increase in foreign exchange income. This growth underscores the bank’s focus on the SME market and the benefits of full-service banking.
The Group’s subsidiaries also recorded a profit, with the property development subsidiary’s revenue growing by KES 321 million supported by growth in project management fees and commissions.
The bancassurance subsidiary (HFBI) saw a 12% growth in profit before tax to reach KES 47.5 million.
The Group CEO is confident in sustained profitability across all business units driven by revenue diversification and the deepening of its full-service banking.
As we embark on 2023, we have an optimistic outlook on our performance. Revenue diversification is expected to accelerate as the Group continues to roll out SME and Personal Banking offerings and project management initiatives, and this is expected to continue facilitating access to cheaper funding for the franchise.
HF Group CEO – Robert Kibaara
Read Also: HF Group Reports a Profit of KES 77.3 Million in Q3
