In the process of signing million-shilling sale agreements for houses
that look superb in photos, many forget to carry out specific, thorough
inspections of the houses they are buying. Eventually, they discover too
late that they will have to spend another fortune to make the house
habitable. Photo/FILE
By JOSHUA MASINDE
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.
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