Mortgage lender Housing Finance’s (HF) net profit fell 81 per cent in the nine months to September. This was a fall equivalent to Sh. 678 million.
Profit stood at Sh. 159 million, down from Sh. 837 million during a similar period last year.
The lender attributed the fall to the slowdown in the property market as a result of the prolonged electioneering period had led to the jump in defaults on loans.
Non-performing Loans went up from Sh. 5.5 billion last year to Sh. 8.1 billion this year.
The mortgage financier’s revenues came in 25 per cent lower than a similar period last year to Sh.2.8 billion from Sh.3.7 billion last year. Interest income from loans was down Sh.1 billion from Sh.6.1 billion last year to Sh.5.1 billion, indicating that the bank went slow on giving out loans.
HF’s loan book shrank from Sh. 53.9 billion to Sh. 51.1 billion during the nine months to September.
