, NAIROBI, Kenya Oct 30 – Housing Finance (HF) has posted a six percent profit after tax to Sh719.78 million in the third quarter of 2014 up from Sh676.17 million.
Net loans and advances to customers increased by 29 percent to Sh43.27 billion up from Sh33.47 billion while customer deposits increased to Sh33.14 billion up from Sh25.92 billion in 2013.
Group total assets increased to Sh56.88 billion up from Sh47.03 billion while borrowed funds portfolio increased to Sh16.70 billion up from Sh14.81 billion as a result of additional funding from Norfund and Ghana International Bank.
Commenting on the results, HF Managing Director Frank Ireri said their strategy is beginning to take shape as the firm shifts focus to provision of a complete suite of retail and corporate banking products and services to its customers.
Ireri said plans are underway to open branches in Kitengela, Westlands, and Naivasha before the end of the year and additional seven new branches in 2015.
Ireri said the firm will be seeking additional funding in the first quarter of 2015 to bolster its capital strength to support its growth strategy.
“Plans are underway subject to regulatory and shareholder approval to undertake a Rights Issue in the first quarter of next year,” said Ireri.
Net non-performing loans increased to Sh3.39 billion up from Sh2.43 billion as a result of the tough economic and operating environment persisting within the economy.
The company plans on tapping into the Real Estate Investment Trusts (REITs) market for long term funding through both Development and Income REITs.
In July the firm received a license to operate as a Real Estate Investment Trust (REIT) Trustee from the Capital Markets Authority (CMA) and is awaiting approval for a REITS Manager for its subsidiary, Kenya Building Society.