FEATURED STORY

HF Group record Sh37 million in Q1 net profit

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HF Group
HF Group Managing Director Frank Ireri (right). [Photo/ Courtesy]
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HF Group posted quarter one after tax profit of Ksh 37 million for the period ending March 31, 2017.

Total Interest income declined by 12.9% during the period under review to Ksh 1.612 billion down from Ksh 1.85 billion recorded in 2017.  Correspondingly, net interest income also declined by 12.6% from Ksh 797 million in a similar period in 2017 to Ksh 697 million.

Total non – interest income increased by 64% due to property sales while total operating expenses increased by 10.3% on the back of cost of houses sold during the quarter. Non-performing loans increased during the period to Ksh 8.47 billion from Ksh 7.78 billion in 2017 due to unfavorable macro-economic conditions that affected the property and financial sector

Customer deposits declined by 8% to Ksh 35.9 billion down from Ksh 38.2 billion recorded in 2017. Loans and advances to customers also decreased by 11% from Ksh 54.59 billion in 2017 to Ksh 48.78 billion in 2018.

In the short term, the Group earnings is expected to be impacted by the further reduction in the Central Bank Rate (CBR) rate to 9.5%. The Group has shifted focus to deepening its digital banking proposition with investment in online banking and mobile app channels to increase accessibility to customers and grow non – funded income streams.

The Group has also consolidated its real estate development business as a provider of affordable housing and is geared to tap into the National Government’s big four agenda. These initiatives are earmarked to improve the Group performance in the medium term – long term.

READ: MISS LANGATA PRISON FACES JAIL FOR KILLING BOYFRIEND

The recent acquisition of a 14.83% shareholding of HF’s strategic investor Britam by Pan African focused Private Equity Group AfricInvest is a potential boost to HF Group.

Written by
BT Correspondent -

editor [at] businesstoday.co.ke

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