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Listed financial solutions provider HF Group PLC has posted KSh 624.3 million in profit after tax for the first half of 2025, more than double the KSh 266.3 million it posted in the same period last year.
- •Profit before tax rose 148% to KSh 703 million, up from KSh 283 million a year earlier, as the Group benefitted from rising interest income, stronger fee earnings, and lower funding costs.
- •The Group’s net interest income jumped 53% to KSh 2.04 billion, driven by loan book repricing and higher yields on interest-earning assets.
- •The Group’s banking subsidiary has also officially upgraded to a Tier II bank, reflecting its growing market share and stronger capital base which has risen exponentially from KSh 1.789 billion in June 2024 to KSh 8.936 billion in June 2025.
“Our strong performance is a clear demonstration of the success of our transformation and diversification strategy, which continues to drive growth across our subsidiaries,” HF Group CEO Robert Kibaara said.
Since its restructuring in August 2015, HF Group has built out its brand from its former identity as Housing Finance. It now operates four subsidiaries: HFC, HFDI, HF Bancassurance Intermediary (HFBI), and HF Foundation.
The holding company’s non-funded income rose 18% to KSh 844 million, supported by higher fees from its banking subsidiary’s custody business and project management commissions in the property subsidiary. Operating income expanded 41% to KSh 2.89 billion.
Operating expenses rose 24% to KSh 2.19 billion , reflecting higher staff and administrative costs, while loan loss provisions increased 26% to KSh 211 million. Despite these cost pressures, profit growth outpaced expenses.
| Metric | Jun 30, 2025 | Jun 30, 2024 | YoY % |
|---|---|---|---|
| Net Interest Income | 2.04 Bn | 1.33 Bn | +53.4% |
| Non-Interest Income | 844.3 Mn | 716.3 Mn | +17.9% |
| Operating Income | 2.888 Bn | 2.049 Bn | +40.9% |
| Loan Loss Provisions | 211 Mn | 167 Mn | +26.3% |
| Operating Expenses | 2.185 Bn | 1.766 Bn | +23.7% |
| Profit Before Tax (PBT) | 702.7 Mn | 283 Mn | +148.3% |
| Profit After Tax (PAT) | 624.3 Mn | 266.3 Mn | +134.4% |
| Earnings per Share (EPS) | 0.66 | 1.38 | -52.2% |
| Total Assets | 76.91 Bn | 63.75 Bn | +20.6% |
| Total Equity | 16.75 Bn | 9.32 Bn | +79.7% |
| Customer Deposits | 52.50 Bn | 45.03 Bn | +16.6% |
| Loans & Advances (Net) | 38.95 Bn | 37.92 Bn | +2.7% |
| Gross NPLs | 11.43 Bn | 11.21 Bn | +2.0% |
Stronger Balance Sheet & Capital Position
In the first half of 2025, customer deposits in HF Group increased 17% to KSh 52.5 billion, and total assets grew 21% to KSh 76.9 billion. Interest expense dropped 7%, saving KSh 114 million. Total equity nearly doubled to KSh 16.8 billion, bolstered by the Group’s rights issue concluded earlier in the year.
Kibaara noted that the rights issue provided capital to accelerate growth across key market segments, while the Group’s addition to the MSCI Frontier Markets Small Cap Index in February 2025 further boosted visibility among global investors.