(Last Updated On: July 23, 2015)
Mortgage lender Housing Finance recorded a net profit rise of 2.2% for the half year ended June 2015. Net profit stood at Ksh485.1 million which is a rise of Ksh10.7 million.
An interim dividend of Ksh0.65 was declared which is 45% payout ratio. This is less than the Ksh0.75 that was paid last year. This is due to the rights issue that led to an extra 116.6 million new shares.
Property sales slowed down from Ksh506.2 million to Ksh306.9 million. Loan loss provision went up by 61.4% to Ksh283.3 million. Bad debts increased by 7.3% to Ksh4.1 billion.
Loan book expanded by 28.8% to ksh49.9 billion while interest income went up by 27% to Ksh3.7 billion. Interest expense went up by 26.4% to Ksh1.9 billion and operating expenses was up by 16.4% to Ksh1.3 billion.
Housing Finance will develop 1,272 apartments in Komarock through its subsidiary Kenya Building Society. It also plans to build 144 apartments in Precious Gardens, 1100 apartments along Thika Road and 240 apartments along Kamiti Road. It is also developing a mall in Komarock and also in Kahawa Downs developing 220 two bedroom apartments.