HF Group Posts KES525Mn Net Profit with 35pc growth FY 2024

• HF Group posts Kes 525 million full year net profit

Performance Highlights

• The Group net profit of Kes 525million, from Kes 388, representing a growth of 35% y-o-y
• 21% growth in Non-Funded Income to Kes 1.51 billion
• 23% growth in Total Interest Income to Kes 6.41 billion
• Total Deposits growth of 9% from Kes 43.79 billion to Kes 47.86 billion
• 14% Total Assets Growth from Kes 61.55 billion to Kes 70.15 billion
• Core capital ratio grew four-fold in FY2023 to 21.4% in FY2024 (Minimum is 10.5%)
• Liquidity Ratio grew from 24.5% in FY23 to 41.8% in FY2024 (Minimum is 20%)
• All the Group subsidiaries (HFC, HFDI and HFBI) profitable

 Listed local financial solutions provider, HF Group has posted a full year net profit growth of 35% from Kes 388 million in FY2023 to Kes 525 million in FY2024.

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

While releasing the results, the HF Group Chief Executive Officer, 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% for from 1.24 billion in FY2023 to 1.51 billion in FY2024. 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% with interest earning assets expanding by 17% equivalent to Kes 8.6B growth. Yield on interest earning assets grew by 145 basis points resulting to a year-on-year growth in interest income of Kes 1.2B while interest expense grew by Kes 1.09B.

“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 which was oversubscribed by 38% and resulted in the Group’s addition to the prestigious Morgan Stanley Capital International Index.

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