Home Business amount Lower costs and strong revenues boost HF Group’s half-year net profit to 50 million shillings

Lower costs and strong revenues boost HF Group’s half-year net profit to 50 million shillings

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Companies

Lower costs and strong revenues boost HF Group’s half-year net profit to 50 million shillings


HF Group Headquarters in Nairobi. FILE PHOTO | NMG

HF Group Plc posted a net profit of 49.8 million shillings in the six months to June on lower expenses and higher loan and transaction income. The company wrote off a net loss of 346 million shillings a year earlier.

Non-interest income increased from 325.1 million shillings to 498 million shillings, while total interest income reached 2.07 billion shillings from 1.98 billion shillings.

HF operating expenses fell to 1.46 billion shillings from 1.56 billion shillings. The mortgage financier’s lending and investments in government securities barely changed, indicating that it benefited from higher returns on the debt portfolio.

Interest rates on commercial bank loans, treasury bills and bonds have risen in recent months amid rising government borrowing and runaway inflation.

HF’s return to profitability comes as its parent company Britam Holdings plans to sell its stake in the mortgage financier as part of its strategy to reduce its portfolio of listed shares.

Britam recently said it could sell all or part of its 48.2% stake in HF within a year. The process of divestment from the Nairobi Stock Exchange-listed company, which intends to transform into a traditional bank, began last year.

Britam, which has canceled a substantial part of the investment it made in HF, says it acquired the stake with the aim of expanding into the property and mortgage business.