(Last Updated On: April 27, 2016)
Top mortgage financier in Kenya HF Group reported a 47.7% rise in net profit for the first quarter of 2016 ended March 2016. Net profit stood at Ksh327.4 million as compared to Ksh221.5 million last year.
Interest income rose by 28.4% to ksh2.3 billion while the loan book increased by 12% to Ksh53.4 billion. Investment in government bonds and treasury bills rose to Ksh4.2 billion from Ksh255 million to take advantage on the extra ordinary high interest rates offered by the government.
Other income from items like property sales went up by 43.5% to ksh241.6 million. Loan loss provision dropped by Ksh7.8 million to Ksh136.8 million while the gross bad loans rose by Ksh105.8 million to ksh327.4 million.
Interest expenses grew by 28.8% to Ksh1.2 billion while customer deposits rose by 23.5% to stand at Ksh40.8 billion. Operating expenses rose by 15.1% to ksh773.1 million due to increased amortization cost after commissioning its new core banking system.