Housing Finance (HF) Group has recorded a Kes 61.5 million profit after tax for the nine months period to September 30, 2022.
This is a return to profitability compared to last year's period, when the listed mortgage and banking firm recorded a loss of Kes 569.9 million.
HF Chief executive officer Robert Kibaara has attributed the improved performance to a turnaround strategy that focused on a diversified business model and robust risk management framework.
“Our business transformation strategy remains on track, with positive delivery in all areas,” he said.
Further, he said that the firm has implemented an aggressive non-performing loans strategy that saw this reduce by six per cent within a year, paving the way for an asset re-allocation phase to support growth.
In addition, non-performing loans were reduced by Kes 0.53 billion, a six per cent reduction year on year.
Gross earnings for the period stood at Kes 77.3 million.
The firm’s Net Interest Income grew 14 per cent to Kes 1.57 billion, while Non-Funded Income grew by 66 per cent to Kes 753 million.
The Group closed the quarter with a 27 per cent growth in total operating income which rose to Kes 2.33 billion.
To add to that, total deposits grew by Kes 1.2 billion.
On the other hand, interest-earning assets grew by Kes 3.4 billion while the average yield on the assets also improved year-on-year to 10.0 per cent from 9.4 per cent in the same period in 2021.
The firm attributes this to the revamp of the assets and liabilities management plan.
Group’s new full-service banking model also saw non-interest income and income from non-bank subsidiaries increase by Kes 300 million.
