HF Group profits up 35 per cent to Sh525 million

HF Group, a listed financial solutions provider, has posted 35 percent full-year net profit growth to close at Sh525 million, driven by both interest income and non-funded earnings.

This is up from Sh388 million reported in the financial year 2023, as the mortgage-focused entity sustained its business transformation strategy that has seen the Group and all its operating subsidiaries post growth in profitability for the past three years.

During the period under review, interest income which includes loans and advances and government securities, increased to Sh6.4 billion, up from Sh5.2 billion the previous year.

This, as loans and advances slightly edged up to Sh38.9 billion from Sh38.7 billion. The Group’s non-funded income rose by 21 per cent for from Sh1.24 billion to Sh1.51 billion in 2024, as a result of growth in the banking subsidiary’s foreign exchange income, the property subsidiary’s project management fees and commissions.

Its balance sheet grew by 14 per cent with interest earning assets expanding by 17 per cent equivalent to Sh8.6B growth as total assets grew to Sh70.15 billion, up from Sh61.55 billion.

Total deposits grew nine per cent from Sh43.79 billion to Sh 47.86 billion. HF Group CEO Robert Kibaara noted that the sustained positive performance was as a result of the group’s business diversification strategy and scaling up of new business streams such as business banking, property business and custodial solutions.

“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” said Kibaara.

HF Group recently held a successful Rights which was oversubscribed by 38 per cent and resulted in the group’s addition to the prestigious Morgan Stanley Capital International Index.

The Group’s banking subsidiary core capital ratio closed the year at 21.4 per cent, more than double the minimum requirement of 10.5 per cent.

In comparison, its liquidity ratio stood at 41.8 per cent against the required 20 per cent at the end of the reporting period.