The mortgage lender yesterday said its net profit rose to Sh995.2 million compared to Sh743.3 million in the previous year, a 33.9 per cent jump. Profit before tax was up 63 per cent to Sh1.48 billion from Sh907 million in 2012.
"Sales from the
Its non-interest income more than trippled to Sh1.37 billion from Sh283.9 million a year before.
HF has pumped in Sh300 million into KBS over the two years, Ireri said. Shareholders will get a dividend of Sh1.75 per share.
HF's loan book grew by Sh4.92 billion to Sh35.21 billion, he said, adding that "loan growth is estimated at 30 per cent year-on-year". Its mortgage sales hit an all-time high of Sh10.77 billion in 2013. Interest income was up Sh380 million to Sh5.44 billion.
The lender's deposit mobilisation campaign through current accounts increased customer deposits to Sh26.5 billion from Sh22.93 billion in 2012.
Low interest rates however helped slash interest expense by seven per cent in the period under review to Sh2.88 billion from Sh3.11 billion in the previous year.
Ireri said the stable Central Bank Rate, which is now at a two-year low of 8.5 per cent, pushed down the cost of deposits. The Eurobond is expected to further reduce interest rates as the government's domestic debt appetite slows.
"Interest rates are likely to decline further once the government successfully issues the Eurobond, which will lower cost of funding for the group," said Ireri.
HF's net non-performing loans increased by Sh650 million to Sh2.26 billion in the year.
"The Land Act has affected recovery of outstanding loans, while the CBK's prudential guidelines now recognise multiple mortgage facilities," he said.
Its debts went up by Sh2,27 billion in the year from Sh12.09 in 2012 after it took up loans from the IFC (Sh1.6 billion) and
HF said it has developed a master plan for two parcels of land (33 acres and 7.5 acres) in Komarock, which will be developed by KBS to further stamp its presence in the whole housing supply chain.
It has also started lending in foreign currency - euro, dollar and sterling pound - since last October, and has set aside Sh417 million (
The lender is also eyeing Real Estate Investment Trusts as a trustee, and as developer and Reit manager through KBS. Ireri said at least five new branches will be opened this year. HF can still lend an additional Sh21 billion and take in deposits of about Sh23.34 billion.
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