Africa-Press – Kenya. Listed mortgage and banking firm HF Group has posted a Sh61.5 million profit after tax for the nine months period to September 30, 2022.
This is a swing back to profitability compared to the same period last year when it recorded a loss of Sh569.9 million.
Chief executive officer Robert Kibaara 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,” Kibaara said.
He said the lender has put in place an aggressive non-performing loans strategy that saw this reduce by six per cent within a year, paving way for an asset re-allocation phase to support growth.
Non-performing loans reduced by Sh0.53 billion, a six per cent reduction year on year.
Gross earnings for the period stood at Sh77.3 million.
The Group’s Net Interest Income grew 14 per cent to Sh1.57 billion while Non-Funded Income grew by 66 per cent to Sh753 million.
The Group closed the quarter with a 27 per cent growth in total operating income which rose to Sh2.33 billion. Total deposits grew by Sh1.2 billion.
Interest earning assets grew by Sh3.4 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 last year.
HF attributes this to the revamp in assets and liabilities management plan.
The Group’s new full-service banking model saw non-interest income and income from non-bank subsidiaries increase by Sh300 million.
Foreign exchange income shored up by 40 per cent underscoring the business’ new grip on the Small and Medium-sized Enterprises (SME) market.
Property development subsidiary grew its revenue by Sh263 million supported by growth in project management fees and commissions.
“A new revenue frontier in project management has already taken shape as all the subsidiaries remain profitable year to date with the insurance agency subsidiary posting a 43 per cent growth in gross profit,” Kibaara said.
Total expenses reduced by five per cent to Sh2.25 billion.
For More News And Analysis About Kenya Follow Africa-Press
