HF doubles Q3 profit to Sh989m
Business
By
Nanjinia Wamuswa
| Nov 30, 2025
The performance marks the strongest third-quarter performance in almost 10 years for the financial services holding company following a loss streak between 2018 and 2021.
It came on the back of a significant reduction in cost of funds, an increase in interest income and non-funded income.
Net interest income during the review period rose to Sh3.201 billion from Sh1.960 billion, fuelled by higher loan volumes and a larger investment book.
Non-interest income, on the other hand, grew to Sh1.295 billion from Sh1.007 billion as fees and other customer transactions improved. The combined effect pushed operating income to Sh4.496 billion from 2.967 billion.
The growth, Group CEO Robert Kibaara said, was also powered by the Group’s diversification strategy, which is paying off, with all its subsidiaries registering growth in profitability.
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“The Group is on a growth trajectory, and our business is growing strongly across all three subsidiaries. Our diversification strategy is yielding results, and the growth engines we have created over the last few years are now all scaling well,” he said in a statement.
The Group’s asset book grew by 22 per cent to Sh80 billion, while the total deposits grew by 20 per cent to Sh55 billion.
The Group also registered a 52 per cent growth in operating income, 29 per cent growth in non-funded income, while net interest income grew by 63 per cent.
The liquidity ratio remained solid at 54.2 per cent, more than double the regulatory minimum, while the capital to risk-weighted assets ratio closed at 21.9 per cent, significantly above the required 10.5 per cent.
“We have a well-capitalised business, and we are delivering value propositions that are relevant to customers. We will continue to invest in customer value propositions and digitisation so as to increase opportunities for customers to self-serve. Further, we have reduced our base lending rate twice this year to support our customers,” Kibaara said.
The Group, which is celebrating its 60th anniversary, was earlier in the year added to the prestigious Morgan Stanley Frontier Markets Small Cap Index, which serves as a key performance indicator for investors tracking emerging markets. The Group’s banking subsidiary, HFC, was also recently promoted to tier 2 status.