The Lower Eastern Times Opening The Third Eye
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HF Group has reported a 35% increase in full-year net profit, reaching Sh525 million, driven by both interest income and non-funded earnings.
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This marks a rise from Sh388 million in 2023. The growth is attributed to the company’s ongoing business transformation strategy, which has resulted in increased profitability for the Group and its subsidiaries over the past three years.
Interest income, including loans, advances, and government securities, rose to Sh6.4 billion, up from Sh5.2 billion the previous year. Loans and advances saw a modest increase, growing to Sh38.9 billion from Sh38.7 billion.
Additionally, non-funded income grew by 21%, rising from Sh1.24 billion to Sh1.51 billion, driven by gains in the banking subsidiary’s foreign exchange income and the property subsidiary’s project management fees and commissions.
The Group’s balance sheet expanded by 14%, with interest-earning assets growing by 17%, or Sh8.6 billion, bringing total assets to Sh70.15 billion, up from Sh61.55 billion. Total deposits increased by 9%, rising from Sh43.79 billion to Sh47.86 billion.
HF Group CEO Robert Kibaara attributed the positive performance to the Group’s diversification strategy and the expansion of new business areas such as business banking, property, and custodial services. The recent rights issue, which was oversubscribed by 38%, has strengthened the Group’s capital base and enabled accelerated growth, enhanced efficiency through technology, and improved customer service.
The Group’s banking subsidiary closed the year with a core capital ratio of 21.4%, well above the minimum required 10.5%. Its liquidity ratio stood at 41.8%, exceeding the required 20%.
