HF records 58pc fall in net profit as income dips

Housing Finance (HF) has reported a Sh37 million after-tax profit for the first quarter of the year. FILE PHOTO | NMG 

By ANNIE NJANJA

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Summary

• The drop in January to March 2018 earnings is largely due to a Sh100 million dip in net interest income to Sh697 million as operating costs rose by 10 per cent to Sh928 million, according to HF’s financial statements released Thursday.
• The housing lender also reported a 10 per cent increase in non-performing loans to Sh8.5 billion during the period.
• The group has in the past blamed the “slowdown in the property market and overall unfavourable macroeconomic conditions” for the bad debt.

Mortgage financier Housing Finance (HF) has reported a Sh37 million after-tax profit for the first quarter of the year, a 58 per cent drop from Sh88 million recorded in the first quarter of 2017.

The drop in January to March 2018 earnings is largely due to a Sh100 million dip in net interest income to Sh697 million as operating costs rose by 10 per cent to Sh928 million, according to HF’s financial statements released Thursday.

The housing lender also reported a 10 per cent increase in non-performing loans to Sh8.5 billion during the period. The group has in the past blamed the “slowdown in the property market and overall unfavourable macroeconomic conditions” for the bad debt.

The results follow the group’s 86 per cent dip in earnings for the year ended December to Sh126 million.

The depressed earnings also come at a time when the mortgage financier has announced plans to recruit a new CEO after the group managing director Frank Ireri said he would not seek renewal of his contract next year.

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