HF Group records Sh12.6 million in half-year profits
30-08-2018 11:53:17 | by: Nixon Kanali | hits: 739 | Tags:

HF Group has posted half-year period pre-tax profit of Ksh 12.6 million for the period ending June 30, 2018, compared to the Ksh 231 million the group recorded in 2017.   

Total Interest income declined by 13.1% over the period under review to Ksh 3.194 billion down from Ksh 3.679billion recorded in 2017.  Correspondingly, net interest income also declined by 13.8% from Ksh 1.5 billion in a similar period in 2017 to Ksh 1.3billion. This is attributable to the interest rate capping that took effect in April.

Total operating expenses increased by 9.4% to Ksh 1.91 billion up from Ksh 1.75billion on the back of increased provisions for the non-performing loans,ICT and Marketing expenses aimed at bolstering its digital banking strategy. Non-performing loans increased during the period to Ksh 8.86billion from Ksh 7.9billion in 2017.

Customer deposits declined by 3% to Ksh 36.22billion down from Ksh 37.35 billion recorded in 2017. Loans and advances to customers also decreased by 9.8% from Ksh 52.76 billion in 2017 to Ksh 47.59billion in 2018. The decline in loans is attributable to strategic de-risking following the interest rate capping during the period under review that has made risk pricing of long-term loans impractical.

Market conditions have largely not changed and this has impacted a great deal on the performances by various units within the group including our banking subsidiary HFC and property development subsidiary HFDI,” said HF Group Managing Director Frank Ireri.

“The management shall continue to focus on cautious growth of loan sales, disbursements, and a conservative approach to cost and cash flow management as it continues to address the liquidity challenge,” he added.

 www.hfgroup.co.ke