Hf Group Plc · NSEKE:HFCK
Hf — Shareholder Meeting (May 2025)
53 slides from Hf's shareholder meeting presentation, May 28, 2025
Slide 1: General Meeting
GENERAL MEETING 28TH MAY 2025 Robert Kibaara| Group CEO 1
Slide 2: Our Journey Today
OUR JOURNEY TODAY NO ITEM 1 About HF Group 2 Update on our strategy implementation 3 Business performance highlights 4 Looking Ahead
Slide 3: About Us
ABOUT US “WHF GROUP Dreams Made Possible
Slide 4: We are HF Group
We are HF Group HF Group and HFC are regulated by the Central Bank of Kenya
Slide 5: Our Shareholding Profile
Our structure has largely remained the same Our Shareholding Profile GOK & NSSF 10.59% BRITAM 48.19% Retail Investors 41.22% Retail Investors GOK & NSSF BRITAM
Slide 6: Our Board of Directors: Group
Our Board of Directors : Group Prof. Olive M. Mugenda, Dr. Benson I. Wairegi, EBS Mr. Tom Gitogo, Ms. Felister W. Kembi, PhD, EBS, CBS, MGH DIRECTOR, HF GROUP, HFBI & HFDI DIRECTOR, HF GROUP DIRECTOR, HF GROUP CHAIRPERSON NON INDEPENDENT & NON INDEPENDENT & NON INDEPENDENT & NON INDEPENDENT & N O N
Slide 7: Our Board of Directors: Subsidiaries
Our Board of Directors: Subsidiaries Dr. Kaushik Manek, EBS Robert N . Kibaara, Ms. Constance W. Ms. Shilpa Haria, CHAIRMAN & DIRECTOR HFC, GROUP CHIEF EXECUTIVE OFFICER Gakonyo, CBS, MGH, DIRECTOR, HFC DIRECTOR HFDI N ON INDEPENDENT & NON INDEPENDENT & NON DIRECTOR, HFBI, INDEPENDENT & NON EXECUTIV
Slide 8: Senior Management
Senior Management Robert N . Kibaara, Mr. Peter O. Mugeni, Ms. Regina Anyika, Ms. Juddy Wambita, GROUP CHIEF EXECUTIVE OFFICER MANAGIN G DIRECTOR, HFC DIRECTOR LEGAL & DIRECTOR, CREDIT N ON INDEPENDENT & EXECUTIVE COMPANY SECRETARY Mr. Sammy Kamanthi, Ms. Nkatha Gitonga, Mr. David Igweta, Mr. Tonney
Slide 9: Senior Management
Senior Management Ms. Catherine Olaka, Mr. Joseph Chikove, Ms. Maureen Stephyne, Mr. Patrick Njunge, DIRECTOR, HUMAN RESOURCES & DIRECTOR, TREASURY PRINCIPAL OFFICER, HFBI DIRECTOR, RETAIL & BUSINESS ADMINISTRATION BANKIN G Ms. Peris Wambui, Mr. Joseph N gare, Mr. Kennedy Gachoki, ACTING EXECUTIVE D
Slide 10: Key Statistics
KEY Statistics # of Branches Deposits (KES) 22 51Bn Gross Loans (KES) Customer No's 44Bn 353,534 Number of Staff Total Assets 634 73Bn
Slide 11: Our Strategy
Our Strategy SWHF GROUP Dreams Made Possible
Slide 12: Our Strategic Foundations
Our Strategic Foundations OUR VIS IO N To be a top ten banking group OUR PURPOSE by being the most Enriching Lives dependable and loved financial services provider OUR MIS SION OUR VALUES Enriching Lives Stewardship Through Financial Teamwork Empowerment Innovative Customer Centric Integrity
Slide 13: The key themes of our Strategy
The key themes of our Strategy 1 Reposition Achieve a complete shift of perception from a single product house to a full service niche bank offering superior capabilities for the selected segments Achieve the desired growth in Commercial, SME, Institutional, affluent, mass 2 Scale up the Engines affluent
Slide 14: Highlights on Capital Progress
Highlights on Capital Progress
Slide 15: New Capital: 6B
Solidifying the Capital Base: Our business is now well anchored New Capital:6B • Accelerated business growth • Significant improvements in efficiency • Regulatory compliance • Return on investment to shareholders • Enhanced systems & customer value propositions • Investment in community • Improved e
Slide 16: Solidifying the Capital Base: Our business is now well anchored
Solidifying the Capital Base: Our business is now well anchored
Slide 17: We have sufficient buffers above the regulatory minimum
We have sufficient buffers above the regulatory minimum 27.99B 21.73B We are ahead of the implementation HFC Core 17.27B schedule towards the 10B Capital Mar-25- 8.83B 14.15B 11.70B Regulatory 8.67B 10.00B Minimum 8.00B 2.08B 7.00B 5.00B 3.00B 1.00B 1.00B Dec-23 Dec-24 Dec-25 Dec-26 Dec-27 Dec-28 De
Slide 18: Our Business Structure
Our Business Structure HF GROUP HFDI HFC HFBI HFF Property and Mortgage Lending Bancassurance Investment with Full-Service Foundation intermediary Subsidiary Banking offering COMMERCIAL RETAIL & BUSINESS BANKING TREASURY CREDIT BANKING SPECIAL PERSONAL ULTIMATE BUSINESS INSTITUTIONAL DIASPORA COMMER
Slide 19: HFC: Evolution of our customer value propositions
HFC: Evolution of our customer value propositions tailored on evolving customer needs 2025 2022 2020 2018 1 6 7 10 PROPOSITION PROPOSITION(S) 1. Real Estate 1. Mortgage Business 6. Institutional Banking 2. Personal Banking 7. Commercial Banking 3. Business Banking 8. Diaspora Banking 4. Treasury 9.
Slide 20: HFC Business Segments Contribution
HFC Business Segments Contribution De-risking the Bank from economic sector concentration has progressed well LEGACY REAL ESTATE 11% DIASPORA 3% FINANCIAL PERSONAL Key INSTITUTIONS BANKING 7% 26% Legacy INSTITUTIONAL BANKING 10% New ULTIMATE BUSINESS 20% BANKING 10% COMMERCIAL Distribution of AUM 13
Slide 21: The New Businesses are making a positive contribution to our performance
The New Businesses are making a positive contribution to our performance 1,301 2024 Revenue Contribution(M) 927 506 367 137 86 -18 Treasury & PB CB BB Diaspora UB IB Special Custody Assets - 740 Key PB BB CIB Treasury, FI & Cust UB DB Special Assets Commercial & Personal Banking Business Banking Tre
Slide 22: Our Business is now on a firm growth trajectory
Our Business is now on a firm growth trajectory NEW CUSTOMERS GROWTH DIGITAL CHANNELS CUSTOMER ADOPTION 13,000 11,133 14% 17% 9,186 21% 85% 86% 85% 89% 75% 2020 2022 2024 2020 2021 2022 2023 2024 DIGITAL TRANSACTIONS VALUE EVOLUTION (B) GROWTH OF MOBILE LENDING (M) 475M 13.4Bn +200% 7.9Bn 68% 264M 6
Slide 23: Service Excellence has remained our guiding mantra
Service Excellence has remained our guiding mantra +57 +57 +54 +53 +48 +50 +39 NPS -3 2018 2019 2020 2021 2022 2023 2024 Q1- 2025
Slide 24: Service Excellence has remained our guiding mantra
Service Excellence has remained our guiding mantra
Slide 25: FY 2024 Financial Highlights
FY 2024 Financial Highlights 25
Slide 26: The Group registered a PBT of KES 459M representing 37% growth
The Group registered a PBT of KES 459M representing 37% growth. Key Highlights a) Net Interest Income grew by 113M. b) Non Funded Income grew by 244M Group Profit Before Tax +357 M +124M (+9%) (+37%) 4,149M 459M 244M 335M 3,792M 113M Total Income Growth in Net Growth in Non Total Income Dec 2023 Int
Slide 27: Revenue Diversification has progressed well
Revenue Diversification has progressed well Non Funded Income (NFI) Q3 2024 NFI Growth Rates NFI/Total Revenue 21% +21% HF Group Banking Sector 36% 1.51B 33% 33% 33% 1.24B 8% HF Group Dec-23 Dec-24 Banking HF Group Dec-23 Dec-24 Dec-23 Sep-24 Sector FY 2024
Slide 28: Improvement in Interest Income by 1.2B YoY
Improvement in Interest Income by 1.2B YoY due to increase in earning assets Gross Loans Government Interest Securities Income +1.3B 43.8B +7.3B 42.4B (+75%) +1,202 M (+23%) 17.0B 6,407 M 5,204 M 9.7B Gross Loans Dec-23 Dec-24 Dec-23 Dec-24 Dec-23 Dec-24
Slide 29: Performance highlights as at FY 2024
Performance highlights as at FY 2024 1.77B 4.4B 41.8% 8.87B Introduction of Deposit YoY Growth Liquidity Ratio Total Assets Growth Fanaka High Yield account 1.2B 482M Total Interest 2.06B 672.9M Income Investment Income FY HFDI Collections FY HFBI GWPs YoY Growth 23% YoY Growth 41% Relocation of 34%
Slide 30: Q1-25 Performance Highlights
Q1-25 has began on a good note : Performance Highlights 30
Slide 31: 2025 has began on a good note - PBT of KES 337M
2025 has began on a good note - The Group registered a PBT of KES 337M representing a 112% year on year growth. Key Highlights a) Net Interest Income grew by 312M b) Non Funded Income grew by 38M Group Profit Before Tax +351 M +178M (+33%) (+112%) 1,415M 337M 38M 312M 1,064M 159M Total Income Growth
Slide 32: Total deposits have grown by 7Bn
Total deposits have grown by 7Bn as we tapped into our chosen customer segments Total Deposits Total Interest Expense Non Funded Income +6.9B (+16%) 51.2B -31 M (-3.7%) +10% 836 M 425.0M 44.3B 805 M 386.6M Mar-24 Mar-25 Mar-24 Mar-25 Mar-24 Mar-25
Slide 33: Interest income recorded a year on year growth of 281M
Interest income recorded a year on year growth of 281M Gross Loans Government Securities Interest Income +2.1B (+5%) 44.0B 41.9B +10.3B (+102%) +281 M (+19%) 20.4B 1,795 M 1,514 M 10.1B Mar-24 Mar-25 Mar-24 Mar-25 Mar-24 Mar-25
Slide 34: Q1-2025 Performance Summary
Q1-2025 Performance Summary
Slide 35: HFDI: The Evolution of our property business remains on course
HFDI: The Evolution of our property business remains on course Profitability (’000’) 600,000 Cost of finance (‘000’) 350,000 400,000 178,556 300,000 200,000 73,309 119,037 250,000 - 2020 2021 2022 2023 2024 200,000 (200,000) 150,000 291,477 (400,000) (290,53)9 100,000 170,745 (600,000) 151,976 50,00
Slide 36: The New property business has progressed well
The New property business has progressed well
Slide 37: Sagana Residences
The New property business has progressed well SAGANA RESIDENCES BUY & BUILD YOUR DREAM COUNTRY HOME At Sa g a na Ge taw ay, r i g h t o f f t h e n e w ly d u a li z ed Na i r o bi – S a g a n a Hi gh wa y. O n l y 1 hour’s drive f r o m Na ir o b i ¼ ACRE SERVICED PLOTS From 2.5M 70 % Financing Ava
Slide 38: Mangu Gardens
The New property business has progressed well MANGU GARDENS Kes SERVICED PLOTS 2.5M Off Thika Superhighway, Exit 16 Along Bob Harris Road 80% Financing Available
Slide 39: Ngong Hills
The New property business has progressed well NGONG HILLS
Slide 40: In All We Do, Sustainability Remains an Overarching Principle
In All We Do, Sustainability Remains an Overarching Principle Our Green Mortgages will fund green certified buildings
Slide 41: In All We Do, Sustainability Remains an Overarching Principle
In All We Do, Sustainability Remains an Overarching Principle Affordable Clean Energy: Rehani House
Slide 42: In All We Do, Sustainability Remains an Overarching Principle
In All We Do, Sustainability Remains an Overarching Principle We have commenced replacement of all our corporate vehicles across the network with Electric Vehicles
Slide 43: In All We Do, Sustainability Remains an Overarching Principle
In All We Do, Sustainability Remains an Overarching Principle
Slide 44: Partnerships form an integral part of our strategy
Partnerships form an integral part of our strategy
Slide 45: Strathmore SME Conference
We continue to leverage partnerships to accelerate growth Strathmore SME Conference
Slide 46: Employee Engagement
We continue to leverage partnerships to accelerate growth Employee Engagement Partnered with the Skill Up Mentorship program to empower emerging entrepreneurs
Slide 47: We are winning awards: housing space
We are winning awards: We have solidified our presence in the housing space Think Business Awards 2024 : Best Bank in Mortgage Finance Winner
Slide 48: We are winning awards: housing space
We are winning awards: We have solidified our presence in the housing space The Luxury and Living Design Expo 2024 2nd Runners-Up Best Service Provider Category
Slide 49: We are winning awards: Real Estate And Mortgage Finance
We are winning awards: Real Estate And Mortgage Finance
Slide 50: We are winning awards: Abojani Best Turnaround Group
We are winning awards: Abojani Best Turnaround Group
Slide 51: We are winning awards: HF Group Ladies
We are winning awards: HF Group Ladies STELLA MUTAI ANITA CHEGE REGINA ANYIKA Top 40 under 40 Private Sector Lawyer Best Woman in Real Estate in Africa of the Year 2024
Slide 52: Looking ahead we will…
Looking ahead we will… Strengthen the base Remain ever so Significantly Scale Invest in Our for the future close to our Up Our Growth People and stakeholders Engines Culture Unlocking.Possibilities.
Slide 53: HF Group
“HF GROUP