NAIROBI, Kenya, Oct 25 – Housing Finance has posted a 67.2 percent growth in pre-tax profit for the third quarter ended September 2010 boosted by a strong growth in lending and interest income.
The mortgage financier in the country reported a return of Sh353 million for the first nine months of the year, compared to Sh211 million posted during the similar period last year.
The group recorded an after-tax profit of Sh250 million compared to Sh139 million recorded in the corresponding period last year.
"Net loans and advances to customers during the period under review increased to Sh18 billion up from Sh13 billion. Net interest income as a result increased to Sh1.03 billion up from Sh837 million the previous year. Customer deposits increased to Sh18 billion up from Sh12 billion the previous year," a statement from the firm said.
Managing Director Frank Ireri said the firm expects further growth during the end of the year and into 2011, driven by a robust demand for mortgages, favourable interest rates and the successful bond that netted over Sh7 billion.
Mr Ireri said the introduction of agency banking is expected to reduce the cost of offering banking services and at the same time boost the deposit mobilisation campaign for the company.
"The introduction of current accounts and agency banking will raise Housing Finance into the same level as the commercial banks and hence open doors for more business and expansion opportunities," he said.
Housing Finance is involved in mortgage lending and financing of a range of residential and commercial properties that includes office space, retail shopping centers, industrial usage, hospitality and educational use.
The firm has successfully positioned itself as the main player in the property value chain under an ambitious property supply strategy.
The plan involves targeting developers, land owners, professional service providers and construction material providers.