Interest income lifts Housing Finance 9 month profit to Sh837Mn

November 22, 2016
HF Group MD Frank Ireri (Right), Chairman Mr Steve Mainda (Middle), and HFC MD Sam Waweru (Left).

, NAIROBI, Kenya, Nov 22 – Interest from loans and government securities heavily contributed to a 10 per cent growth in HF Group’s profit. 

The group increased its pre-tax profits to Sh1.2 billion during the nine months compared to Sh1.1 billion over a similar period in 2015, as profit after tax and exceptional items rose to Sh837.7 million from Sh777.5 million.

Net interest income grew to Sh3.1 billion during the nine months compared to Sh2.7 billion over the same period in 2015.

“Revenues from our subsidiaries have been on the rise and this is seen in the profitability during this period,” said Frank Ireri Group Managing Director, HF Group.

HF Group’s subsidiaries include HFC the commercial banking arm that offers full banking services, HF Development and Investment, HF Insurance Agency and the social responsibility arm HF Foundation.

Earnings per share rose to Sh3.20 during the period compared to Sh2.98 in 2015.

The company’s loans and advances to customers increased to Sh53.9 billion up from Sh51.7 billion over the same period last year.

Customer deposits grew to Sh41.6 billion during the period under review compared to Sh37.6 billion in 2015.

This was a result of a growth in the number of retail outlets by the Group’s banking and mortgage lending subsidiary HFC as it continues on its march to be a top tier bank by 2020 as per the Group’s vision.

“Over the nine months, we have been able to substantially grow our footprint across the country and this has enabled us to recruit more customers and in turn grow the loan book as well as mobilise deposits from a larger customer base,” said Ireri.

Ireri said HFC is planning to expand its banking channels and launch more innovative products as it seeks to make further inroads in the banking sector.

HF Group’s property and investments subsidiary HFDI continues with its joint venture strategy and will shortly be launching Clay City, a Sh5 billion development to put up 1,520 apartments along Thika Road in a joint venture with Clay Works Limited.

Ireri said the Group is also at an advanced stage of launching a number of new insurance products that will be housed by HFIA, the insurance subsidiary.

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