News Column

Equity and NBK Increase Mortgages Over Past Year

June 11, 2014

James Waithaka

Equity Bank and National Bank of Kenya have made significant leaps in mortgage lending, surpassing the Sh5-billion mark for the first time in 2013.

Equity's value of outstanding mortgages clocked Sh5.28 billion in 2013 and is closing in on rival top-tier lender Co-operative Bank whose mortgage loans value decreased to Sh5.91 billion.

It overtook Barclays, State-owned Consolidated Bank and NBK, and had 1,091 mortgage loan accounts.

The Central Bank's residential mortgage survey for 2013 shows NBK's outstanding mortgage loans amounted to Sh5.15 billion compared to Sh4.12 billion in 2012.

Stand-alone mortgage lender Housing Finance returned to the top position last year as the largest home loans financier with Sh35.28 billion, toppling KCB's mortgage division whose mortgages totalled Sh34.03 billion.

HF had the highest number of mortgages for the third consecutive year, which rose to 5,402 mortgage accounts compared to 5,235 in the previous year and 4,932 in 2011. It's non-performing mortgage accounts however increased to 594 last year from 396 in 2012.

CBK said non-performing mortgage loans increased to due a carry-over effect from high interest rates in 2012 that continued to impact on financed homebuyers.

Co-op Bank was the only one among the top five lenders dominating the mortgage market to record a decrease in outstanding mortgage loans value. Its mortgages amounted to Sh6.64 billion in 2012.

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Source: AllAfrica

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