HF Group has reported a sharp surge in its third-quarter net earnings, hitting KSh 988.7 million, more than double last year’s figure. It marks the lender’s strongest Q3 performance in almost a decade and prolongs a recovery phase that began after the bruising loss-making years between 2018 and 2021.
The results show a bank gradually rebuilding its balance sheet and regaining stability after years of weak margins and heavy credit pressures. Core capital climbed to KSh 9.243 billion from KSh 1.696 billion, giving the group a far sturdier buffer following prolonged strain from impaired loans and depleted earnings. Gross non-performing loans eased slightly to KSh 11.09 billion from KSh 11.46 billion. Although still high by industry standards, the dip suggests some early success in cleaning up the loan book.
Net interest income rose to KSh 3.201 billion from KSh 1.960 billion, helped by stronger lending volumes and an expanded investment portfolio. Non-interest income also improved, reaching KSh 1.295 billion from KSh 1.007 billion as customer transactions picked up. Together, these gains pushed total operating income to KSh 4.496 billion compared to last year’s KSh 2.967 billion.
Costs rose, but not as quickly as income. Operating expenses increased to KSh 3.357 billion from KSh 2.654 billion. Loan-loss provisions also edged up to KSh 300.3 million from KSh 248.8 million as the lender maintained a cautious approach to credit risk. Even so, income growth comfortably outpaced expenses, propelling profit before tax to KSh 1.139 billion, the first time since Q3 2016 that HF crossed the billion mark at the nine-month stage.
Q3 2025 Performance Snapshot
| Metric | Q3 2025 | Q3 2024 | YoY |
|---|---|---|---|
| Net Interest Income | 3.201Bn | 1.960Bn | ▲63.4% |
| Non-Interest Income | 1.295Bn | 1.007Bn | ▲28.6% |
| Operating Income | 4.496Bn | 2.967Bn | ▲51.5% |
| Total Operating Expenses | 3.357Bn | 2.654Bn | ▲26.5% |
| Loan Loss Provision | 300.3Mn | 248.8Mn | ▲20.7% |
| Profit Before Tax | 1.139Bn | 312.3Mn | ▲264.7% |
| Profit After Tax | 988.7Mn | 483.5Mn | ▲104.6% |
| Total Assets | 79.94Bn | 65.60Bn | ▲21.9% |
| Total Equity | 17.38Bn | 9.386Bn | ▲85.2% |
| Customer Deposits | 54.74Bn | 45.00Bn | ▲21.6% |
| Loans & Advances (Net) | 39.26Bn | 38.20Bn | ▲2.76% |
| Government Securities | 25.56Bn | 13.16Bn | ▲94.2% |
| Core Capital | 9.243Bn | 1.696Bn | ▲445% |
| Gross NPLs | 11.09Bn | 11.46Bn | ▼3.19% |
| Earnings per Share | 0.700 | 1.680 | ▼58.3% |
The group’s asset base expanded to KSh 79.94 billion from KSh 65.60 billion, supported by stronger customer deposits, which rose to KSh 54.74 billion. The investment book almost doubled to KSh 25.56 billion as the bank continued steering its portfolio towards lower-risk assets.
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Earnings per share fell to KSh 0.700 from KSh 1.680, a drop attributed to the expanded share count following last year’s rights issue.
This latest set of results continues a steady rebound that began in 2022, following four difficult years. Each year since has delivered rising profitability, anchored by stronger interest income, tighter cost management, and a more solid deposit base.
