HF Group profit jumps 35 per cent to Sh525m on diversification

Financial services firm HF Group has grown its full-year profit for the year ending December 31, 2024 to Sh525 million, a 35 per cent increase when compared to the previous year.

The positive performance comes on the back of a sustained business transformation strategy that has seen the Group and its operating subsidiaries post growth in profitability for the past three years.

While releasing the results, the HF Group Chief Executive Robert Kibaara, noted that the sustained positive performance is as a result of the Group’s business diversification strategy and scaling up of new business streams such as business banking, property business and custodial solutions.

The Group’s non-funded income rose by 21 per cent for from Sh1.24 billion in 2023 to Sh1.51 billion in 2024 as a result of growth in the banking subsidiary’s foreign exchange (FX) income, the property subsidiary’s project management fees and commissions.

The balance sheet grew by 14 per cent with interest earning assets expanding by 17 per cent - equivalent to Sh8.6 billion growth. Yield on interest earning assets grew by 145 basis points resulting to a year-on-year growth in interest income of Sh1.2 billion while interest expense grew by Sh1.09 billion. Total deposits grew by nine per cent to Sh47.86 billion while asset base expanded to Sh70.15 billion, which is a growth of 14 per cent.

“Our recent rights issue has bolstered our core capital and given the business the leverage to accelerate growth, enhance efficiency through technology and build business propositions that deliver and exceed our customers’ expectations,” said Mr Kibaara.

HF Group recently held a successful Rights Issue, which was oversubscribed by 38 per cent and resulted in the firm’s addition to the Morgan Stanley Capital International Index.

The Group’s banking subsidiary core capital ratio closed the year at 21.4 per cent, more than double the minimum requirement of 10.5 per cent, while its liquidity ratio stood at 41.8 per cent against the required 20 per cent at the end of the reporting period.