Mortgage financier HF – popularly known as Housing Finance- has recorded a 58 per cent profit drop in the first quarter of this financial year.

The mortgage lender posted a net profit of Sh. 37 million in the first three months of this year down from Sh. 88 million which it recorded in the same period the previous year.

The dipping profit comes hot on the heels of the announcement by HF CEO Frank ireri that he will be leaving the lender.

The drop in January to March 2018 earnings is largely due to a Sh100 million dip in net interest income to Sh697 million as operating costs rose by 10 per cent to Sh928 million, according to HF’s financial statements released Thursday.

The housing lender also reported a 10 per cent increase in non-performing loans to Sh8.5 billion during the period. The group has in the past blamed the “slowdown in the property market and overall unfavourable macroeconomic conditions” for the bad debt.

The results follow the group’s 86 per cent dip in earnings for the year ended December to Sh126 million.