Listed mortgage finance provider Housing Finance Group has issued a profit warning saying its earnings for the year ended 31st December 2017 will be potentially 25% lower than that reported for the year ended 31st December 2016.
The lender this is mainly as a result of the interest capping law introduced in August 2015 and further blames “effects of the slow processing of transactions at the Ministry of Lands Registries, that have resulted in slow liquidation of some of their project loans whose conveyance is in process.”
In its Q3 2017, HF Group reported a decline of 81% in its Profits Before Tax and still blamed the negative effects of the interest rate capping, unfavourable macroeconomic conditions and a prolonged electioneering period.
Share Price
HF Group share price is currently trading at a five month low of Sh 10.30.
