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HF Group posts profit of Sh37m in Q1

The Group’s total Interest income declined by 12.9 percent during the period under review to Sh1.612 billion down from Sh1.85 billion recorded in 2017/FILE

NAIROBI, Kenya, May 31 – HF Group has posted quarter one after-tax profit of Sh37 million for the period ending March 31, 2017.

The Group’s total Interest income declined by 12.9 percent during the period under review to Sh1.612 billion down from Sh1.85 billion recorded in 2017.

Net interest income also declined by 12.6 percent to Sh697 million from Sh797 million in a similar period in 2017.

Non-performing loans increased during the period to Sh8.47 Billion from Sh7.78 billion in 2017 due to unfavorable macroeconomic conditions that affected the property and financial sector.

In the short term, the Group earnings are expected to be impacted by the further reduction in the CBR rate to 9.5 percent.

Customer deposits declined by 8 percent to Sh35.9 billion down from Sh38.2 billion recorded in 2017.

Loans and advances to customers also decreased by 11 percent from Sh54.59 billion in 2017 to Sh48.78 billion in 2018.

“The Group has shifted focus to deepening its digital banking proposition with investment in online banking and mobile app channels to increase accessibility to customers and grow non–funded income streams,” the Group says in a statement.

The Group has also consolidated its real estate development business as a provider of affordable housing and is geared to tap into the National Government’s big four agenda.

These initiatives are earmarked to improve the Group performance in the medium term – long term.

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The recent acquisition of a 14.83 percent shareholding of HF’s strategic investor Britam by Pan African focused Private Equity Group AfricInvest is a potential boost to HF Group.

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