HF Group recently released its Q3 2024 financial results, showcasing a stellar performance marked by a 105% year-on-year increase in profit after tax to KES 483.47 million.
This growth highlights the group’s effective execution of its short-term strategy, positioning it as one of the fastest-growing and most undervalued banks listed on the Nairobi Securities Exchange.
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Key Highlights of HF Group’s Q3 2024 Performance:
- Profit Surge: Profit after tax rose by KES 247.23 million, reaching KES 483.47 million in Q3 2024, compared to KES 236.24 million in Q3 2023.
- Customer Deposits: The Group reported a year-on-year growth of KES 1.2 billion in total customer deposits.
- Asset Growth: Total assets grew significantly, registering a KES 4.9 billion increase year-on-year.
- Resilient Margins: Despite elevated interest rates, the group preserved its net interest margin at 5.4%, only slightly down from 5.5% in the previous year.
- Income Streams:
- Interest income on government securities grew by KES 273 million (33%).
- Total interest income rose by KES 874 million (23%).
- Non-funded income (NFI) increased by KES 98 million (11%), accounting for 34% of total income, showcasing a balanced reliance on diverse revenue streams.
- NPL Recovery: HF Group recorded KES 600 million in non-performing loan (NPL) collections as of September 2024, with a further KES 3 billion targeted by year-end.
HF Group attributed its robust performance to disciplined cost management, effective risk mitigation, and strategic resource optimization.
The Group’s focus on adapting to macroeconomic challenges, such as a Central Bank Rate increase from 10.5% in September 2023 to 12.75% in September 2024, has enabled it to sustain profitability while navigating a high-interest-rate environment.
With its impressive profit growth and a consistent record of asset and deposit expansion, HF Group is positioning itself as a bank to watch on the NSE. Its strategic pivot towards diversified income streams and aggressive NPL recoveries underscores its ability to thrive amid industry challenges.
As HF Group moves into the final quarter of 2024, it remains committed to maintaining a vigilant eye on costs and seizing opportunities in the dynamic macroeconomic landscape.
The Group’s proactive measures and strong subsidiary performance set a solid foundation for continued growth and resilience.
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