Housing Finance Group chief executive Robert Kibaara. FILE PHOTO | NMG
HF Group narrowed its losses 99.6 percent to
Sh633,000 in the first quarter ended March compared to Sh158.2 million
the year before, thanks to lower costs.
The lender,
which is shifting from mortgage finance to mainstream banking, saw its
operating and interest expenses drop by double digits.
This helped offset reduced income from lending and transactions.
HF’s
operating expenses dropped 10.7 percent to Sh827.1 million, partly due
to provisioning for bad debt falling 23.4 percent to Sh137.6 million.
The
stock of non-performing loans dropped 5.7 percent to Sh12.2 billion,
with the company saying the results did not take into account the
economic impact of Covid-19 pandemic.
“Due to the short period of the pandemic in Kenya prior to the
reporting date, there was insufficient data to analyse the impact of the
virus. As a result, the financial statements for the period to March
31, 2020, have not been adjusted with the Covid-19 impact,” HF said in a
statement.
“If it is determined that additional
impairments are required after assessment of the impact such impairments
will be taken into account in subsequent periods.”
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