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The management attributes the decline to Interest Rate Capping and the introduction of a floor on deposit rates following the Banking (Amendment) Act, 2016/FILE

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HF issues profit warning for year ended Dec 31, 2017

The management attributes the decline to Interest Rate Capping and the introduction of a floor on deposit rates following the Banking (Amendment) Act, 2016/FILE

NAIROBI, Kenya, Jan 4 – HF Group has announced a profit warning for the year ended 31st December 2017 citing that it would be potentially 25 percent lower than that reported for the year ended 31st December 2016.

The management attributes the decline to Interest Rate Capping and the introduction of a floor on deposit rates following the Banking (Amendment) Act, 2016.

Further, management says the year experienced unfavorable macroeconomic environment resulting in a slowdown in major economic activity, adversely affecting credit growth.

“The warning is based on the un-audited results for the period to 30th September 2017, factoring in forecasts to the end of the year, and the preliminary evaluation made by the Board, with reference to figures and information currently available,” management said.

The firm is now focusing on a number of strategic initiatives whose success will drive profitability in future that include Investment in digital channels to enhance accessibility as well as focusing on customer service and experience.

Others include deepening of the full-service banking value proposition and scaling up on the provision of affordable and decent housing.

“The Board of Directors remains confident in the resilience of the Group to deliver value to all stakeholders,” management noted.

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