HFCB Group's Half-Year Profit Nears KSh 1 Billion for The First Time

HFCB Group has delivered its strongest first-half performance on record in 2026, with profit, income, assets and deposits reaching new highs as the lender’s multi-year recovery accelerated. 

• Profit after tax climbed 58.3% to KSh 988.33 million, net interest income rose 29.4% to KSh 2.64 billion and customer deposits surged 29.7% to KSh 68.08 billion.
• Profit before tax jumped 74.3% to KSh 1.23 billion from KSh 702.89 million, crossing KSh 1 billion in a first half for the first time.
• Profit after tax came within KSh 12 million of the same threshold and surpassed the previous H1 record of KSh 624.34 million set in 2025.

The performance extends a recovery from three consecutive first-half losses between 2019 and 2021. HFCB returned to H1 profitability with KSh 50 million in 2022, before profit after tax rose to KSh 182 million in 2023, KSh 266 million in 2024, KSh 624 million in 2025 and KSh 988 million this year. H1 profit has increased almost 20-fold in four years.

Total operating income increased 31.8% to a record KSh 3.81 billion from KSh 2.89 billion. Net interest income reached a record KSh 2.64 billion, more than double the KSh 1.27 billion reported in H1 2023, while non-interest income increased to KSh 1.16 billion from KSh 844 million.

The balance sheet also expanded rapidly. Total assets rose 22.3% to a record KSh 94.04 billion, nearly six times their H1 2009 level of KSh 15.91 billion. Customer deposits increased by KSh 15.58 billion in a year to KSh 68.08 billion, six times the KSh 11.26 billion held in H1 2009.

Net loans and advances grew 11.5% to KSh 43.41 billion from KSh 38.94 billion. Despite the increase, the loan book remains 18.8% below its H1 2016 peak of KSh 53.47 billion. HFCB is therefore generating substantially higher earnings and operating income than at its previous mid-2010s peak without rebuilding lending to the same scale.

Asset quality showed some improvement, although problem loans remain elevated relative to the earlier period. Gross non-performing loans declined 2.1% to KSh 11.19 billion from KSh 11.43 billion and are 13.7% below their H1 2019 peak of KSh 12.97 billion. Net NPL exposure fell 22.4% to KSh 2.18 billion from KSh 2.81 billion.