Housing Finance profits up 19pc

By JOSHUA MASINDE jmasinde@ke.nationmedia.com
Posted  Wednesday, February 20  2013 at  11:3

An increase in interest income pushed up the profits of mortgage lender Housing Finance by 19 per cent in the financial year ended December 2012.

Profits after tax for Housing Finance increased to Sh743 million owing to a 47 per cent rise in interest income.

In the period under review, interest income rose to Sh5.1 billion compared to Sh3.4 billion recorded in 2011, despite a doubling in total interest expenses.

“The overall results were impressive considering that we were operating in a very difficult trading 

environment characterised by funding pressures and resultant reduced margins and exchange rate volatilities,” 

Housing Finance managing director Frank Ireri said, while releasing the results on Wednesday.

Total interest expenses increased by 99.6 per cent to Sh3.1 billion from Sh1.56 billion while, loans and advances rose by Sh5 billion to Sh30.2 billion in the review period. Customer deposits, on the other hand, increased by Sh4.3 billion to Sh22.9 billion in 2012.

Mr Ireri noted that its operations business will be shaped this year by the General Election, land reforms, its new insurance agency business and the strengthening of its Kenya Building of Society (KBS) arm that was re-operationalised last year to focus on construction of houses.