Housing Finance posts Ksh 327M quarter one profit

Housing Finance has recorded 47 percent growth in its first quarter profit before tax, which stood at Sh470 million.

The group attributes its performance to a rise in interest income as well as income from housing development projects.

During the period ended March 31, interest income stood at Sh1 billion compared to Sh782.5 million a year earlier. This was driven by 12 percent growth in the loan book with Sh53.4 billion lent out to customers.

Housing Finance has been restructuring its business with keen focus on commercial banking as well growing income from housing projects. During the quarter, Housing Finance launched a new Core Banking System as it seeks to offer more commercial banking products. .

“From our set of first quarter results, it is evident that we have gathered momentum since our restructuring exercise in August last year,” Housing Finance Group Managing Director Frank Ireri said.

The group plans to roll out mobile banking services, salary advances and instant alerts on transactions as part of its strategy to grow its commercial banking business.

Customer deposits during the period increased by 24 percent to Sh41.1 billion from Sh34.3 billion in 2015 on account of  higher customer numbers. The group’s Non-performing loans however increased during the period to Sh4.5 billion on account of delayed liquidation of some project loans.