HFCB Plc Group has reported a 59.9 percent increase in profit after tax for the half-year period ended June, driven by higher earnings from lending and other banking activities.

The mid-tier lender’s net profit rose to Sh998.3 million in the six months from Sh624.3 million in the corresponding period last year.

The firm, whose shares are publicly traded on the Nairobi Securities Exchange (NSE), said net interest income increased 29.4 percent to Sh2.64 billion from Sh2.04 billion, reflecting stronger earnings from loans and advances as well as investments in government securities.

Non-interest income, on the other hand, grew 37.4 percent to Sh1.16 billion from Sh844.3 million, giving the group a further boost as it widened its sources of revenue.

“We are building a more diversified and resilient earnings base that positions our business for sustainable growth,” HFCB Group Chief Executive Robert Kibaara wrote in a press statement.

Net loans and advances to customers grew 11.5 percent to Sh43.41 billion from Sh38.94 billion, expanding the lender's core earning assets.

Gross non-performing loans edged down 2.1 percent to Sh11.19 billion from Sh11.43 billion, offering a modest improvement in the quality of the group's loan book.

The group raised its loan-loss provision by 30 percent to Sh273.9 million from Sh210.6 million, signalling continued caution over potential credit losses.

Customer deposits increased 29.7 percent to Sh68.08 billion from Sh52.50 billion, pointing to stronger mobilisation of customer funds during the period.

The results, however, triggered an unusual trading halt at the Nairobi Securities Exchange after the bourse said it had received the financial report during market hours.

HFCB Group published the results in the national newspapers on Friday morning, while the NSE circulated the group's financial performance statement to investors after 11am.

The NSE, in a statement issued after 12.30pm, said it had halted trading in the shares for the day's session following the release of the financial results during trading hours.

The exchange said the suspension was intended to allow the market time to orderly disseminate and assimilate the new financial information.

The firm’s Profit before tax climbed 74.2 percent to Sh1.22 billion from Sh702.9 million, reflecting the widening gap between the group's income growth and the increase in operating costs.

Total operating income rose 31.7 percent to Sh3.80 billion from Sh2.89 billion, supported by higher interest income and faster growth in non-interest revenue.

Operating expenses rose 18.1 percent to Sh2.58 billion from Sh2.18 billion, growing at a markedly slower pace than income and allowing a larger share of revenue to flow into profits.

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