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HF Group posts 40pc jump in full-year net profit to Sh1.4 billion

Business
 From left: HF Group CEO Robert Kibaara, HF Bancassurance Intermediary Principal Officer Maureen Stephyne and HFC Managing Director Peter Mugeni during the investors briefing in Nairobi, on March 27, 2025. [David Gichuru, Standard]

HF Group reported a 40 per cent rise in net profit for the year ended December 2025, driven by higher interest income and a sharp increase in non-funded revenue, the lender said on Tuesday. 

The lender posted a net profit of Sh1.42 billion, up from Sh1.01 billion a year earlier, it said. 

Total operating income rose 48 per cent to Sh6.17 billion, supported by a 64 per cent increase in net interest income, which reached Sh4.36 billion. Non-funded income grew 20 per cent to Sh1.81 billion, reflecting higher transaction volumes and diversified revenue streams. 

Income from government securities surged 79 per cent to Sh2.83 billion, contributing to the earnings growth. 

Total assets expanded 17 per cent to Sh82.4 billion, while customer deposits grew 19 per cent to Sh56.9 billion, bolstered by improved customer propositions and a 130-basis-point reduction in the cost of deposits. 

The group’s liquidity ratio stood at 51.5 per cent, more than double the regulatory minimum of 20 per cent, while the core capital to risk-weighted assets ratio came in at 21.8 per cent, well above the statutory requirement.  

Core capital crossed Sh10 billion, allowing the lender to meet revised regulatory capital thresholds four years ahead of the 2029 deadline. 

“These results demonstrate that our transformation strategy continues to deliver strong and sustainable growth,” Group Chief Executive Robert Kibaara (pictured) said in the statement. “Our focus now is on scaling digital platforms, expanding our financial solutions, and deepening customer relationships.” 

HF Group, which is listed on the Nairobi Securities Exchange, was added to the MSCI Frontier Markets Small Cap Index in February 2025.

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