Housing Finance loss expands by nearly eight times to Ksh.730M
- The greater loss is largely attributable to depleted operating income streams with both interest and non-interest income heads drying up.
- The lender has however trimmed its costs base.
- The bank has blamed disruptions arising from the COVID-19 pandemic for the loss surge.
Housing Finance Group has announced a near eight time expansion in loss making across nine months to September 30 to Ksh.730.2 million.
The greater loss from Ksh. 84.6million last year is largely attributable to depleted operating income streams with both interest and non-interest income heads drying up.
“HF Group projects that the net earnings for the year ended December 31, 2021 will be substantially lower compared to the earnings reported in the same period in 2019,” the bank said in a statement.
Total operating income for Housing Finance Group has subsequently plunged by 28.6 per cent to a flat Ksh. 2billion as interest income dips to Ksh. 3.6billion from Ksh. 4.1billion in 2019.
On its part, non-interest funded income has contracted to Ksh. 404.2million from Ksh. 1.1billion.
The lender has however trimmed its costs base with total operating costs standing at Ksh. 4.7billion from Ksh. 5.3billion on the back of lower loan-loss provisioning.
Further, the bank has strengthened its asset quality with gross non-performing loans (NPLs) dipping to Ksh. 11.2billion from Ksh. 12.7billion last year.
The bank has blamed disruptions arising from the COVID-19 pandemic for the loss surge as it issues a profit warning on expected earnings at the end of 2020.
Housing Finance had closed 2019 with a loss making position Ksh. 110.1million.
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