Net loans and advances to customers increased 20 percent to Sh31.6 billion up from Sh26.4 billion.
Net interest income increased to Sh665.1 million, up from Sh456.3 million posted in 2012, representing a 46 percent jump, while customer deposits increased by 31 percent to Sh24.5 billion up from Sh18.7 billion.
Commenting on the results, HF Managing Director Frank Ireri said, “the commendable growth during the first quarter can be attributed to a strong uptake of mortgages during the second half of 2012. Following recent peaceful national elections, we expect sustained growth during the year.”
The MD said business growth prospects will however be shaped by the Constitution implementation, inflation threat, monetary policies and land reforms.
Housing Finance invested Sh255 million in the form of share capital in its construction subsidiary, Kenya Building Society, which it projects will start contributing to the bottom line by the last quarter of 2013.
During the review period, the firm also invested Sh530 million in the Komarock 5A housing project, and also Sh86.7 million in the Precious Gardens joint venture housing project.
Ireri said the firm is adequately poised to fund ongoing and planned projects.
“The company is currently well-capitalised with strong liquidity funded by a mix of customer deposits and long term stable funds,” he explained.
He added that the firm may seek additional funding in the fourth quarter of the year to further boost the Kenya Building Society’s capital.
HF’s successful Bond Issue and international financing agreement with the European Investment Bank (EIB) and the London based Ghana International Bank PLC (GHIB) increased borrowed funds by 51 percent to Sh12.2 billion up from Sh8.1 billion.
Operating expense however increased to Sh464.2 million up from Sh330 million as a result of investment in the Housing Finance Insurance Agency, Kenya Building Society, HF Foundation, hiring new staff and various marketing activities.
Housing Finance plans to leverage on its current accounts, insurance agency and also venture into Forex products during the second quarter of the year to drive growth.
In its 2012-2016 strategy, the firm focuses on four key pillars: customer, growth, real estate investment & development and funding.
Housing Finance plans to undertake Product re-engineering, increase footprint through additional branches, sales centres and agency banking.