HF Group has showcased a robust performance amid ongoing efforts toward economic recovery according to an announcement made of the financial year 2023 results.
The report reveals several significant milestones achieved by the company over the fiscal period, indicating notable improvements in various key indicators.
A standout feature of HF Group’s FY’2023 results is the substantial increase in Profit After Tax (PAT), which surged by an impressive 46.2% to KES 0.4 billion, compared to KES 0.3 billion in the preceding fiscal year. This surge underscores the company’s adeptness in navigating challenging economic conditions while sustaining profitability and delivering value to stakeholders.
Moreover, HF Group experienced remarkable growth in revenue streams, with both Net Interest Income (NII) and Non-Funded Income (NFI) witnessing substantial increases.
NII rose by 18.1% to KES 2.5 billion, while NFI soared by an impressive 41.3% to KES 1.2 billion. This growth reflects the effectiveness of the company’s strategies in optimizing income-generating activities and diversifying revenue sources.
However, alongside the positive financial performance, the report highlights a rise in total operating expenses, which increased by 22.8% to KES 3.5 billion. This increase was mainly attributed to escalated loan loss provisions and staff costs, signaling the company’s proactive approach in risk management and investment in human capital for long-term growth and profitability.
Despite the rise in expenses, HF Group’s balance sheet expanded, with total assets growing by 8.0% to KES 61.6 billion, primarily driven by an expansion in the loan book to KES 38.8 billion. This expansion reflects the company’s focus on extending credit facilities to support economic activities and meet customer needs.
Additionally, HF Group increased investments in Kenya government securities, recording a notable uptick of 13.4% to KES 9.7 billion, reflecting confidence in the country’s economic prospects and prudent investment strategy. Customer deposits also saw a healthy boost, rising by 10.2% to KES 43.8 billion, indicating growing trust and confidence in HF Group’s financial services.
Despite commendable financial performance, the Board of Directors decided not to declare dividends for the fiscal year ending December 31, 2023, possibly reflecting a strategic decision to retain capital amidst evolving economic dynamics and ensure the company’s resilience.
HF Group’s strong performance in FY’2023 demonstrates resilience, strategic positioning, and commitment to delivering value to stakeholders amid challenging economic conditions. With the economy continuing to recover, the company appears well-positioned to capitalize on emerging opportunities and drive sustainable growth in the financial sector.
