Mortgage Financier Housing Finance Group announced Thursday its profit after tax rose 23 per cent to Sh1.2 billion for the year ended December 31, 2015 compared to Sh975 million during a similar period in 2014.
HF Group Managing Director Frank Ireri attributed the leap in profitability to a rise in interest income from the group’s banking and mortgage lending subsidiary HFC and profits from sale of properties by HFDI (HF Development and Investment) during the year.
The group’s net interest income grew by 19 per cent to Sh3.6 billion from Sh3 billion. Its total non- interest income increased to Sh1.17 billion from Sh843 million (39 per cent increase) on account of increased house sales during the year.
Loans and advances to HFC customers increased by 17.2 per cent to Sh53 billion from Sh45.2 billion in the previous year following continued uptake of new banking products.
Gross non-performing loans ratio declined to 7.7 per cent from 9.5 per cent as a result of continuous collection on NPL accounts, the lender explained, as well as improved credit underwriting and monitoring practices during the year.