HF Group recorded a 112 per cent increase in pre-tax profit to Sh337 million for the first quarter of 2025 compared to Sh159 million in the same period last year.

The earnings were lifted by a 33 per cent rise in total income, which grew to Sh1.41 billion from Sh1.06 billion.

Net interest income rose by 46 per cent, while non-funded income accounted for 30 per cent of the revenue, supported by higher returns from fees, commissions, custodial services, and income from its property and insurance businesses.

Commenting on the performance, HF Group CEO Robert Kibaara said the firm is beginning to see the benefits of its strategic changes.

“We continue to realise the impact of our transformation journey. Our business model has evolved significantly, enabling us to deliver sustainable growth and value to our shareholders,” he said.

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He also noted that a recently concluded capital-raising effort had exceeded expectations.

“The successful rights issue... has enhanced our capital position, allowing us to power growth as we innovate to meet customer needs,” he stated.

Customer deposits grew by 16 per cent to Sh51 billion, while total assets increased by 18 per cent to Sh73.4 billion.

Liquidity stood at 45.1 per cent, well above the regulatory minimum of 20 per cent. The Group’s core capital to risk-weighted assets ratio was 21.3 per cent, more than double the required 10.5 per cent.

Operating costs rose by 19.1 per cent to Sh1.08 billion, a result of increased investment in staff and digital systems.

At the same time, provisions for expected credit losses declined by 8.0 per cent, attributed to improved loan management and recovery processes.

In February 2025, HF Group was listed in the MSCI Frontier Markets Small Cap Index, a move expected to improve visibility among international investors.

Originally established as a mortgage provider, the firm restructured in 2015 into a non-operating holding company with four subsidiaries: HFC, HFDI, HFBI, and HF Foundation.

Its operations now span personal and business banking, insurance, property development, trade finance, and diaspora services.

Reflecting on the broader outlook, Kibaara said the Group is well-positioned to pursue long-term growth.

“This performance underscores the resilience of our business and the opportunities that lie ahead as we build a more diversified and digitally empowered financial institution,” he said.

With Q1 earnings signalling positive investor sentiment and strategic traction, the Group now appears poised to consolidate its gains and push forward in aligning itself with Kenya’s broader economic ambitions.