The Nairobi-based group’s performance was driven by strong revenue growth, rising customer deposits and tighter cost management during the period under review.
“These results reflect the disciplined execution of our strategy, with strong growth across both funded and non-funded income while maintaining a firm focus on efficiency. We are building a more diversified and resilient earnings base that positions our business for sustainable growth,” said HFCB Group Chief Executive Officer Robert Kibaara.
Total operating income rose 32 per cent year-on-year to Ksh. 3.8 billion, supported by a 29 per cent increase in net interest income to Ksh. 2.64 billion and a 37 per cent rise in non-funded income to Ksh. 1.16 billion.
The growth in non-funded income was driven by increased transaction volumes, higher fees and a broader diversification of revenue streams, giving the Group a wider earnings base amid a shifting interest-rate environment. Operating costs rose by a more moderate 18 per cent, largely reflecting investment in human resources as HFCB expanded its frontline workforce to support business growth.
The Group’s balance sheet also expanded significantly, with total assets growing 22 per cent to Ksh. 94.04 billion, while customer deposits climbed 31 per cent to Ksh. 68.97 billion, a reflection, the group said, of continued customer confidence and the strength of its funding franchise.
“This is a strong indicator of the confidence customers have in our value proposition. At the same time, we recorded a reduction in our cost of deposits, demonstrating that we are growing our funding franchise efficiently,” Kibaara said.
HFCB also cut its cost of deposits by 68 basis points, pointing to an improved funding mix and greater balance sheet efficiency.
The Group maintained a strong liquidity ratio of 54.4 per cent, more than double the regulatory minimum of 20 per cent, while its core capital to risk-weighted assets ratio stood at 20.7 per cent, well above the 10.5 per cent regulatory requirement.
Its core capital has now surpassed Ksh. 10 billion, allowing HFCB to meet revised regulatory capital thresholds four years ahead of the 2029 deadline.
“Surpassing Ksh. 10 billion in core capital four years ahead of the regulatory deadline underscores our capacity to generate capital organically and provides a strong foundation for continued balance sheet growth. Our liquidity and capital buffers give us the resilience to pursue opportunities while maintaining prudent risk management,” Kibaara said.
The results come as financial institutions across the sector continue to focus on strengthening balance sheets, diversifying revenue and improving operational efficiency in an increasingly competitive macroeconomic environment.
HFCB said the first-half performance reinforces its focus on sustainable growth, customer value and financial resilience, while continuing to invest in the people and capabilities needed to support expansion.
