Housing Finance Group has reported a 27% increase in profits for the half year of 2016 driven by rise in interest income from its banking unit and income from housing projects by its real estate subsidiary.
Key Highlights
- Profit before tax increased by 27% to KSh 889.7 million compared to KSh 699.6 million Posted in a similar period in 2015.
- Profit after tax and exceptional items rose 27% to KSh 612.6 million from KSh 485.1 million reported in the same period in 2015.
- Net interest income rose to KSh 2.08 billion from KSh1.71 billion in 2015
- Customer deposits increased by 6% to KSh 39.8 billion from KSh 37.4 billion in 2015 due to increased number of customers.
- Loan book grew by 7% to KSh 53.5 billion from KSh 49.9 billion in a similar period in 2015.
- The Group’s non-performing loans increased during the period to KSh 5.3 billion from KSh 4.1 billion in 2015 on account of delayed liquidation of some project loans.
- The Group also increased its investments in government paper from KSh 516 million to KSh 3.7 billion both to take advantage of the improved yields as well as building a sinking fund towards liquidation of the first tranche of its Corporate Bond expected in October 2017.
- Total operating expenses increased from KSh 1.36 billion to KSh 1.6 billion on account of increased amortization costs due to commissioning of the new Core Banking System and other business software earlier in the year.
- Earnings per Share increased by 26% to KSh 3.51 compared to KSh 2.79 reported over a similar period in 2015.
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The Group, through its banking subsidiary HFC opened six new branches during the period to bring the total number of operational branches to 24.
“We are expanding our branch network and banking channels to serve more clientele plus diversifying our operations in line with the long-term strategic plan to ensure we remain solid,” Mr Ireri the CEO said.
