HF Group Net Loss Widens to Kes1.7 Billion.
The mortgage finance bank HF Group reported a Kes 1.7 billion net loss for 2020, from Kes 110 million net loss in 2019. The bank’s net interest income fell 7.5% to Kes 1.87 billion at the end of the year, from Kes2.02 billion in 2019. Non-interest income dipped 62% to Kes 512 million from Kes1.35 billion recorded the previous year.
In January this year, the group received a Kes1 billion capital boost from Britam to support its turnaround strategy, which will see HF Group become a full-service bank.
“Our support will allow the bank to grow its full-service banking offering, deepen penetration of banking services and promote financial inclusion for all. This demonstrates our confidence in the transformation strategy of HF Group,” said the Britam CEO at the time, Dr Benson Wairegi.
In the 12 months to December 2020, HF Group increased customer deposits to Kes1.81 billion from Kes1.79 billion in December 2019. Loans and advances to customers fell 22% to Kes 3.7 billion from Kes 4.7 billion a year ago.
The bank’s operating expenses increased in the period under review to Kes 4.06 billion compared to Kes 3.51 billion recorded in 2019.
The Group’s largest shareholder, Britam, recently revealed plans to sell part of its 48% ownership in the mortgage bank to a major bank in Kenya. The mortgage firm’s shares soared 46% following the announcement.
HF Group is a property and financial services company comprised of four subsidiaries; HFC, its banking arm, HF Development and Investment, HF Foundation, and HF Insurance Agency.