The Lower Eastern Times Opening The Third Eye
HFCB Group, the Nairobi-based financial and property solutions provider, posted a 74 per cent surge in pre-tax profit to Ksh 1.22 billion for the first half of 2026, up from Ksh 703 million a year earlier.
The strong showing was fueled by robust revenue growth, an expanding deposit base, and disciplined cost control. Group CEO Robert Kibaara attributed the results to consistent execution of the company’s strategy, pointing to gains in both interest-based and fee-based income alongside continued efficiency efforts aimed at building a more resilient, diversified earnings model.
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Total operating income climbed 32 per cent to Ksh 3.8 billion, driven by a 29 per cent rise in net interest income to Ksh 2.64 billion and a 37 per cent jump in non-funded income to Ksh 1.16 billion. This non-funded income growth came from higher transaction volumes, increased fees, and broader revenue diversification — helping cushion the Group against interest-rate fluctuations. Meanwhile, operating expenses grew at a slower 18 per cent, mainly due to hiring more frontline staff to support business expansion.
The balance sheet also strengthened considerably: total assets grew 22 per cent to Ksh 94.04 billion, while customer deposits jumped 31 per cent to Ksh 68.97 billion — a sign, according to the company, of strong customer trust and a solid funding base. Kibaara noted that this growth came even as the company managed to lower its cost of deposits, reflecting efficient expansion of its funding operations. Indeed, HFCB reduced its cost of deposits by 68 basis points, pointing to a more efficient funding mix.
On the regulatory front, HFCB maintained a liquidity ratio of 54.4 per cent — more than double the required 20 per cent minimum — and a core capital-to-risk-weighted-assets ratio of 20.7 per cent, well above the 10.5 per cent threshold. Notably, its core capital exceeded Ksh 10 billion, putting it four years ahead of the 2029 regulatory deadline for meeting revised capital requirements. Kibaara said this achievement reflects the company’s ability to build capital organically and gives it a solid platform for further growth, while its liquidity and capital cushions allow it to pursue new opportunities without compromising risk discipline.
The results arrive as banks and financial firms across the sector work to reinforce their balance sheets, diversify income sources, and boost efficiency amid a more competitive economic landscape. HFCB said its first-half performance reflects its ongoing commitment to sustainable growth, customer value, and financial stability, while continuing to invest in the workforce and capabilities needed to fuel its expansion.
