HF Group nearly doubled interest income on government paper in the six months to June 2025, raising its profit before tax by 148 per cent to Sh702.9 million.
The listed financial solutions provider’s interest income from government securities closed the six-month period at Sh1.3 billion compared to Sh676.0 million in the same period in 2024.
Interest from loans and advances increased marginally in the period from Sh2.321 billion in 2024 to Sh2.331 billion in the six months to June 2025.
As a result, the Group’s profit before tax went up almost 150 per cent to Sh702.9 million this year, up from Sh283.0 million in 2024.
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The almost-double interest income from government paper came during a period when Treasury bill rates had been going down to the current eight per cent. This is compared to last year, when the rates stood at 16 per cent.
During the review period, the Group’s profit after tax improved to Sh624.3 million as of June 30, 2025 compared to Sh266.3 million last year.
The Group’s net interest income rose by 53 per cent to Sh2.04 billion, up from Sh1.33 billion in the same period last year.
During the period, total operating expenses for the Group went up to Sh2.2 billion from Sh1.8 billion, catapulted by staff costs, which increased to Sh1.0 billion by the end of June 2025 from Sh877.0 million last year.
The Group posted an 18 per cent growth in non-funded income, which grew to Sh844 million on the back of increased fees from its banking subsidiary’s custody business and the property subsidiary’s project management fees and commissions.
HF Group Chief Executive Robert Kibaara said the company’s performance demonstrated the success of the firm’s transformation and diversification strategy across its subsidiaries.
“We remain focused on building a strong and resilient Group that delivers sustainable value to stakeholders,” he said.
He further acknowledged the positive impact of the firm’s successful rights issue, which provided the impetus for business growth across select market segments.
The Group’s total deposits rose by 15 per cent to Sh52.5 billion, while the balance sheet grew by 21 per cent to Sh76.9 billion with interest-earning assets expanding by 25 per cent, an equivalent increase of Sh12.7billion.
Interest expense dropped by seven per cent, an equivalent of Sh114million from Sh1.7 billion last year to Sh1.6 billion.
“The liquidity ratio remained solid at 51.4 per cent, more than double the regulatory minimum. The core capital to risk-weighted assets ratio closed at 21.3 per cent, significantly above the required 10.5 per cent,” said Kibaara.
HF Group’s banking subsidiary has since been upgraded to a tier-two bank in recognition of its growing market share and strengthened capital base.
The bank recorded a profit after tax of Sh488.4 million for the period ended June 30, 2025 compared to Sh95.7 million in the same period last year.
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HF Group nearly doubled interest income on government paper in the six months to June 2025, raising its profit before tax by 148 per cent to Sh702.9 million.
The listed financial solutions provider’s interest income from government securities closed the six-month period at Sh1.3 billion compared to Sh676.0 million in the same period in 2024.
Interest from
loans and advances increased marginally in the period from Sh2.321 billion in 2024 to Sh2.331 billion in the six months to June 2025.
As a result, the Group’s profit before tax went up almost 150 per cent to Sh702.9 million this year, up from Sh283.0 million in 2024.
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on WhatsApp
The almost-double interest income from government paper came during a period when Treasury bill rates had been going down to the current eight per cent. This is compared to last year, when the rates stood at 16 per cent.
During the review period, the Group’s profit after tax improved to Sh624.3 million as of June 30, 2025 compared to Sh266.3 million last year.
The Group’s net interest income rose by 53 per cent to Sh2.04 billion, up from Sh1.33 billion in the same period last year.
During the period, total operating expenses for the Group went up to Sh2.2 billion from Sh1.8 billion, catapulted by staff costs, which increased to Sh1.0 billion by the end of June 2025 from Sh877.0 million last year.
The Group posted an 18 per cent growth in non-funded income, which grew to Sh844 million on the back of increased fees from its banking subsidiary’s custody business and the property subsidiary’s project management fees and commissions.
HF Group Chief Executive Robert Kibaara said the company’s performance demonstrated the success of the firm’s transformation and diversification strategy across its subsidiaries.
“We remain focused
on building a strong and resilient Group that delivers sustainable value to stakeholders,” he said.
He further acknowledged the positive impact of the firm’s successful rights issue, which provided the impetus for business growth across select market segments.
The Group’s total deposits rose by 15 per cent to Sh52.5 billion, while the balance sheet grew by 21 per cent to Sh76.9 billion with interest-earning assets expanding by 25 per cent, an equivalent increase of Sh12.7billion.
Interest expense
dropped by seven per cent, an equivalent of Sh114million from Sh1.7 billion last year to Sh1.6 billion.
“The liquidity ratio remained solid at 51.4 per cent, more than double the regulatory minimum. The core capital to risk-weighted assets ratio closed at 21.3 per cent, significantly above the required 10.5 per cent,” said Kibaara.
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HF Group’s banking subsidiary has since been upgraded to a tier-two bank in recognition of its growing market share and strengthened capital base.
The bank recorded a profit after tax of Sh488.4 million for the period ended June 30, 2025 compared to Sh95.7 million in the same period last year.
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By Graham Kajilwa