Nairobi Securities Exchange listed Mortgage Finance provider Housing Finance(HF) Group, on Monday reported a 48% growth in its Quarter one 2016 after-tax profit driven by higher interest income.
The bank’s net profit was at Ksh 327.4 million compared to Ksh 221.5 million posted in a similar period in 2015.
Highlights
- Interest income increased by 28% to Ksh 2.3 billion with the loan book growing by 12% to Ksh 53.4 billion against Ksh 47.7 billion in a similar period in 2015.
- During these first three months of 2016, its non-performing loans increased by 18% to Ksh 4.5 billion compared to Ksh 3.8 billion reported in a similar period in 2015, but said that part of this NPLs to be serviced within the year.
- The Bank’s investment in government bonds and T-Bills rose to Ksh 4.2 Billion compared to last year’s Ksh 255 million.
- HF’s customer deposits increased by 24% to Ksh 41.1 billion against Ksh 34.3 billion reported in 2015.
- Loan loss provisions fell by Ksh 7.8 million to Ksh 136.8 million Vs gross bad loans which increased by Ksh 105.8 million to Ksh 327.4 million.
- Operating expenses increased by 15.1% to Ksh 773.1 Million due to increased amortisation of commissioning of its new core banking system & other business software which includes a “new mobile app, salary advances and instant alerts on transactions.”
- Interest expenses rose by 28.8% to Ksh 1.2 billion.
May The Trades Be with you….
