HF half-year net profit hits Sh998m on lending
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HFCB Plc Group, the Kenyan lender formerly known as Housing Finance, reported a 59.9 per cent rise in half-year profit after tax, driven by higher earnings from lending and other banking activities.
HFCB Plc Group has reported a 59.9 per cent increase in profit after tax for the half-year period ended June, driven by higher earnings from lending and other banking activities.
The mid-tier lender's net profit rose to Sh998.3 million in the six months from Sh624.3 million in the corresponding period last year. The firm, formerly known as HFC and Housing Finance (HF) Group, is publicly traded on the Nairobi Securities Exchange (NSE).
Net interest income increased 29.4 per cent to Sh2.64 billion from Sh2.04 billion, reflecting stronger earnings from loans and advances as well as investments in government securities. Non-interest income grew 37.4 per cent to Sh1.16 billion from Sh844.3 million.
"We are building a more diversified and resilient earnings base that positions our business for sustainable growth," HFCB Group Chief Executive Robert Kibaara wrote in a press statement.
Net loans and advances to customers grew 11.5 per cent to Sh43.41 billion from Sh38.94 billion, expanding the lender's core earning assets. Gross non-performing loans edged down 2.1 per cent to Sh11.19 billion, while the group raised its loan-loss provision by 30 per cent to Sh273.9 million, signalling continued caution over potential credit losses.