HF Group Reports Record 250% Profit Surge to Sh1.6 Billion Driven by Non-Funded Income Growth

HF Group's 2025 pre-tax profit surged to Sh1.61bn, driven by a 64% rise in interest income and surpassing Sh10bn core capital requirements early.

By: AXL Media

Published: Apr 1, 2026, 6:18 AM EDT

Source: The information in this article was sourced from The Star Kenya

Exponential Growth and Strategic Transformation

HF Group has delivered a landmark financial performance for the year ended 2025, posting a 250 percent growth in profit before tax. The Group's earnings jumped to Sh1.61 billion, a stark contrast to the Sh460 million recorded during the 2024 financial year. This explosive growth is being attributed to a successful transformation strategy that focused on diversifying income streams and enhancing operational efficiency. Group CEO Robert Kibaara noted that these results confirm the Group’s solid operational momentum and firmly position it for sustainable long-term expansion in a competitive banking landscape.

Operating Income and Revenue Diversification

The Group’s total operating income saw a robust increase of 48 percent, climbing to Sh6.17 billion. A significant portion of this growth was driven by net interest income—primarily from loans and mortgages—which grew by 64 percent to Sh4.36 billion. Beyond traditional lending, HF Group successfully leveraged its non-funded income streams, including service fees, commissions, and transaction charges, which rose by 20 percent to reach Sh1.81 billion. Furthermore, income from government securities provided a massive boost, surging by 79 percent to Sh2.83 billion, showcasing a well-balanced and diversified revenue portfolio.

Asset Base and Deposit Franchise Expansion

HF Group’s balance sheet continues to strengthen, with total assets growing by 17 percent year-on-year to reach Sh82.4 billion. This expansion was mirrored by a 19 percent increase in total deposits, which now stand at Sh56.90 billion. The Group successfully managed to reduce its cost of deposits by 130 basis points over the year, a feat credited to enhanced customer value propositions and a more diversified deposit franchise. These metrics indicate a growing trust in the brand and a successful pivot toward more cost-effective funding sources.