HF Group’s net loss narrowed to KSh110 million in 2019, an 82 percent improvement from KSh598 million net loss booked in 2018. The housing finance company cut its total operating expenses by 17 percent to KSh6.7 billion from KSh8.0 billion in 2018. HF Group reduced its workforce by 9% in 2018, an exercise that lowered operating expenses in 2019.
The firm’s primary source of revenue, interest income, declined by KSh929 million to KSh5.1 billion from KSh6.0 billion earned the previous year. However, non interest income grew by KSh84 million to KSh1.4 billion in the period under review.
The lender posted a KSh2.7 billion increase in customer deposits to KSh37.4 billion in 2019. Despite the leap in customer deposits, loans and advances to customers decreased to KSh38.6 billion from KSh43.4 billion in 2018. The company increased its investments in government securities to KSh4.2 billion from KSh2.7 billion.
The bank’s assets decreased to KSh56.5 billion from KSh60.5 billion booked the previous year. Its liabilities also decreased to KSh46.2 billion from KSh50.2 billion. HF Group directors did not recommend a dividend payout for the year that ended on 31st December 2019.
Related: HF Group reports Sh 652 million loss, NPLs up 56%
HF Group to lay off 9% of its total work force as it aims to reduce operational costs
