Housing Finance (HF Group) has narrowed its net loss by 22 per cent to Kes 569.91 million in the nine months to September, helped by growth in non-interest income and a drop in operating expenses.
The Nairobi Securities Exchange-listed firm had posted a net loss of Kes 730.21 million in the same period last year.
HF Group recorded 12.2 per cent growth in non-interest income, which includes fees and commission charged on loans, to Kes 453.39 million. Total operating expenses dropped by 12.5 per cent to Kes 2.35 billion on the decline in provisions assigned for potential loan defaults.
Total operating income, however, reduced by 9.4 per cent to Kes 1.83 billion, attributed to a dip in total interest from loans and government securities by 18.4 per cent to Kes 2.95 billion.
The drop in interest was pushed by the disbursement of credit to the private sector despite a build-up on lending to the government. Its loans book contracted by 12.1 per cent to Kes 4.61 billion over the period.
The Group’s banking unit, HFC, has been aggressive in lending to the government matching the industry’s efforts, with more than double or 69.6 per cent jump in funds invested in the assets to Sh1.42 billion.
HF Group, like other mortgage lenders, has suffered following a slowdown in the real estate market and more recently the economic fallout from the Covid-19 pandemic, which has seen the loss-making firm cut its financing for a mortgage.
Recently, the listed company appointed its credit director Peter Mugeni Oduori as the managing director, who is a is seasoned banker, with 20 years of experience in leadership, credit risk management and operations, as well as leading large teams both regionally and across Africa.