HF Group Posts Kes 77.3M Profit in Q3

HF Group’s business transformation strategy continues to pay off as the lender posted profit before tax of Kes 77.3 Million for the first nine months of 2022 compared to a loss of Kes 525.4 M during a similar period in 2021.

This performance comes on the back of diversified business model and a water tight risk management framework.

The Group’s Interest Income grew by Kes 202 million while Interest Expense grew by Kes 10.6 million. The varying growth in interest income and interest expense reflect a balance sheet facelift that has witnessed liabilities reorganization to reduce the expensive funding. Total Deposits grew by Kes 1.2 billion.

A revamp in the assets and liabilities management plan saw Interest Earning Assets grow by Kes 3.4 billion while the average yield on these assets also improved year on year to 10.0% from 9.4% in Sep 2021.

“Our business transformation strategy remains on track, with positive delivery in all areas.  We have put in place an aggressive  non-performing loans resolution that saw this reduce by 6% within a year, paving way for an asset re-allocation phase to support our growth in interest earning assets and yields,” said HF Group CEO, Robert Kibaara.

The Group’s new full-service banking model saw non-interest income and income from non-bank subsidiaries increase by Kes 300M.

Foreign exchange income shored up by 40% underscoring the business new grip on the SME market.

The Group’s property development subsidiary grew its revenue by Kes 263M supported by growth in project management fees and commissions.

“A new revenue frontier in project management has already taken shape,” said Kibaara.

All the subsidiaries remained profitable year to date with the insurance agency subsidiary posting a 43% growth in profit before tax.

“This performance, together with our focus on building on our efficiency, expanded synergies and robust cost control, will put the Group in a stronger position,” Kibaara added.