HF Group Posts 86% drop in Net Earnings, Cuts Dividend by 30%, Issues Bonus

Housing Finance Group has reported its financial results for the full year financial period ended December 2017.

Key Highlights;

Total interest income declined by 17% to Sh 7.1 Billion as non-interest income grew by 78% to Sh 1.3 Billion.
Total operating expenses grew by 19% to Sh 4.0 Billion as interest expense declined by 11% to Sh 4.2 Billion.
Profit before tax fell by 75% to Sh 334 Million while net profit fell by 86% to Sh 126 Million.
The bank’s investment in government paper was up significantly by 333% to Sh 2.3 Billion
Net loans and advances to customers declined by 9% to Sh 50 Billion while customer deposits declined slightly by 4% to Sh 36.7 Billion.
Gross non performing loans increased by 33% to Sh 8.2 Billion.
The lender declared a dividend of Sh 0.35 per share, which is down by 30% compared to the previous year.
The board also declared a bonus of 1 share for every 10 held and books for the same close on 27th April 2018.