Housing Finance posts 71pc growth in net income as NPL’s rise
Housing Finance managing director Frank Ireri at a recent function. Housing Finance has posted a 70.65 growth in net income in the first nine months of this year. Photo/FILE
What you need to know:
Housing Finance on Monday said that profit after tax rose to Sh676.17 million over the period ended September this year from Sh396.22 million over the period ended September 2012.
Interest income rose by 10.31 per cent to Sh4.1 billion while interest expenses dropped 9.61 per cent to Sh2.13 billion in the first nine months of this year from Sh3.71 billion and Sh2.35 billion respectively in the first nine months of last year.
The bank’s non-performing loans rose by 70.98 per cent to Sh2.43 billion in the first nine months of 2013 from Sh1.42 billion in the first nine months of 2012.
Housing Finance has posted a 70.65 growth in net income in the first nine months of this year buoyed by a rise in interest income and a drop in interest expenses.
The bank on Monday said that profit after tax rose to Sh676.17 million over the period ended September this year from Sh396.22 million over the period ended September 2012.
Other comprehensive income, which includes valuation changes on bonds stood at Sh677.01 million up from Sh403.72 million.
Interest income rose by 10.31 per cent to Sh4.1 billion while interest expenses dropped 9.61 per cent to Sh2.13 billion in the first nine months of this year from Sh3.71 billion and Sh2.35 billion respectively in the first nine months of last year.
The bank’s loan book grew by 16.15 per cent to Sh33.47 billion in the first nine months of this year from Sh28.82 billion in the first nine months of last year while deposits grew by 8.01 per cent to Sh25.92 billion from 24.04 billion over the same time period.
“The company will continue to focus on organic growth, on connecting with customers through building strong lasting relationships and providing them with a wide choice of relevant investment solutions,” said Frank Ireri, managing director Housing Finance in a statement.
The bank’s non-performing loans rose by 70.98 per cent to Sh2.43 billion in the first nine months of this year from Sh1.42 billion in the first nine months of last year.
Housing Finance attributed this to a change of laws particularly those contained in the new Land Act related to the recovery process as well as impact of high interest rates that prevailed during most of 2012.
It expects the non-performing loans to reduce in the next quarters following reduction of the lending rates due to a stable macro monetary policy environment.
