Companies

HF narrows third quarter loss to Sh570m

HF

HF Group head office in Nairobi. FILE PHOTO | NMG

Housing Finance Group #ticker:HFCK has narrowed its net loss by 22 percent to Sh569.91 million in the nine months to September, helped by growth in non-interest income and a drop in operating expenses.

The Nairobi Securities Exchange-listed firm had posted a net loss of Sh730.21 million in the same period last year.

The mortgage financier recorded 12.2 percent growth in non-interest income, which includes fees and commission charged on loans, to Sh453.39 million.

Total operating expenses dropped by 12.5 percent to Sh2.35 billion on the decline in provisions assigned for potential loan defaults.

Total operating income, however, reduced by 9.4 percent to Sh1.83 billion, attributed to a dip in total interest from loans and government securities by 18.4 percent to Sh2.95 billion.

The drop in interest was pushed by the disbursement of credit to the private sector despite a build-up on lending to the government.

Its loans book contracted by 12.1 percent to Sh4.61 billion over the period.

The Group's banking unit, HFC, has been aggressive in lending to the government matching the industry’s efforts, with more than double or 69.6 percent jump in funds invested in the assets to Sh1.42 billion.

HF Group, like other mortgage lenders, has suffered following a slowdown in the real estate market and more recently the economic fallout from the Covid-19 pandemic, which has seen the loss-making firm cut its financing for mortgage.