Listed financial and property solutions provider HFCB Group has recorded a 74 per cent increase in profit before tax, reaching Ksh1.22 billion for the six months ended June 2026, compared to Ksh703 million posted during the same period last year. The Nairobi-based group attributed the strong performance to higher revenues, increased customer deposits and improved cost management.
Revenue Growth Drives Performance
HFCB’s total operating income increased by 32 per cent year-on-year to Ksh3.8 billion. Net interest income rose by 29 per cent to Ksh2.64 billion, while non-funded income grew by 37 per cent to Ksh1.16 billion.
The increase in non-funded income was supported by higher transaction volumes, increased fees and greater diversification of the group’s revenue sources. Despite the growth in business activity, operating costs increased by a more moderate 18 per cent, mainly due to investment in additional staff as the group expanded its frontline workforce.
HFCB Group CEO Robert Kibaara said the results demonstrate the group’s focus on efficiency and diversification while building a stronger foundation for long-term growth.
Customer Deposits Rise 31 Per Cent
The group’s balance sheet also expanded during the period, with total assets rising 22 per cent to Ksh94.04 billion. Customer deposits increased by 31 per cent to Ksh68.97 billion, which HFCB attributed to continued customer confidence and an expanding funding base. The group also reduced its cost of deposits by 68 basis points, reflecting improvements in its funding mix and balance sheet efficiency.
Strong Capital and Liquidity Position
HFCB maintained a strong liquidity ratio of 54.4 per cent, significantly above the regulatory minimum of 20 per cent. Its core capital to risk-weighted assets ratio stood at 20.7 per cent, compared with the regulatory requirement of 10.5 per cent.
The group’s core capital has now exceeded Ksh10 billion, enabling it to meet revised regulatory capital requirements four years ahead of the 2029 deadline. Kibaara said the stronger capital position gives HFCB room to expand its balance sheet while maintaining prudent risk management.
The group’s first-half results come as financial institutions continue to strengthen their balance sheets, diversify income streams and improve efficiency amid a competitive economic environment. HFCB said it will continue focusing on sustainable growth, customer value and financial resilience while investing in its workforce and capabilities to support future expansion.
That’s a fantastic result for HFCB Group. It’s great to see increased investment in the Kenyan financial sector.