For the first half of 2025, listed financial solutions provider HF Group PLC reported a profit after tax of KSh 624.3 million, more than twice as much as it did during the same period the previous year (KSh 266.3 million).
Due to increased interest income, improved fee earnings, and reduced funding costs, the Group’s profit before tax increased 148 per cent to KSh 703 million from KSh 283 million the previous year.
Higher yields on interest-earning assets and loan book repricing were the main drivers of the Group’s 53 per cent increase in net interest income to KSh 2.04 billion.
Upgrade of HF Group’s subsidiary to a Tier II bank
As a result of its increasing market share and stronger capital base, which has grown rapidly from KSh 1.789 billion in June 2024 to KSh 8.936 billion in June 2025, the Group’s banking subsidiary has also been formally upgraded to a Tier II bank.
“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 reorganisation in August 2015, HF Group has expanded its brand from its previous name, Housing Finance. Its four current subsidiaries are HFC, HFDI, HF Bancassurance Intermediary (HFBI), and HF Foundation.
Non-funded income increased by 18% to 844 million
Higher fees from its banking subsidiary’s custody business and project management commissions in the property subsidiary helped the holding company’s non-funded income increase by 18 per cent to KSh 844 million. Operating income reached KSh 2.89 billion, a 41 per cent increase.
Higher staff and administrative costs caused operating expenses to rise 24 per cent to KSh 2.19 billion, while loan loss provisions increased 26 per cent to KSh 211 million. Despite these cost pressures, profit growth exceeded expenses.
Customer deposits rose 17% to KSh52.5 billion
Customer deposits at HF Group rose 17 per cent to KSh 52.5 billion in the first half of 2025, while total assets increased 21 per cent to KSh 76.9 billion. By reducing interest expenses by 7 per cent, KSh 114 million was saved. With the Group’s rights issue resolved earlier in the year, total equity almost doubled to KSh 16.8 billion.
According to Kibaara, the Group’s inclusion in the MSCI Frontier Markets Small Cap Index in February 2025 increased its visibility among international investors, and the rights issue supplied funds to speed up growth across essential market segments.