HF profits build up to Sh345m

July 21, 2011

, NAIROBI, Kenya, Jul 21 – Mortgage financier, Housing Finance (HF) has released its half year results posting a pre-tax profit of Sh345 million up from Sh205 million posted last year.

This marked an increase of 68.2 percent.

The Board of Directors have declared an interim dividend of 50 cents per share which is to be paid out by the end of November this year.

Speaking while announcing the half year results, HF Managing Director Frank Ireri confirmed that market dynamics were constantly pushing the firm to expand its product range in a bid to maintain its market share.

“Given the prevailing market dynamics affecting the supply and demand elements and the general economic climate, it is only prudent to step up our innovation in order to remain competitive,” Mr Ireri explained.

Still on a growth path, HF also managed to grow its investment income by more than 71 percent derived from a diversified investment portfolio.

The financier’s non-interest income registered a 23 percent growth closing at Sh139 million up from Sh113 million. As part of a strategic income diversification initiative, HF is actively engaging in mobile banking, property sales and rentals.

The mortgage lender is expected to unveil the first fixed interest mortgage product in Kenya in coming days.

The product developed by HF will feature a fixed interest rate component for the first five years of the mortgage term and is geared at stepping up mortgage penetration.

The new product has been designed to attract first time home owners and is part of the firm’s ongoing efforts to break mortgage entry barriers.

This is expected to be further enhanced once HF launches current accounts later this year.

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