The mortgage finance bank HF Group reported a KSh1.7 billion net loss for the year 2020, from KSh110 million net loss in 2019. The bank’s net interest income fell 7.5% to KSh1.87 billion at the end of the year, from KSh2.02 billion in 2019. Non-interest income dipped 62% to KSh512 million from KSh1.35 billion recorded the previous year.
In January this year, HF Group received a KSh1 billion capital boost from Britam to support the bank’s turnaround strategy which will see HF Group become a full service bank.
“Our support will allow the bank to grow its full-service banking offering, deepen penetration of banking services and promote financial inclusion for all. This demonstrates our confidence in the transformation strategy of HF Group,” said the Britam CEO at the time, Dr Benson Wairegi.
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In the 12 months to December 2020, HF Group managed to increase customer deposits to KSh1.81 billion from KSh1.79 billion in December 2019. Loans and advances to customers fell 22% to KSh3.7 billion from KSh4.7 billion a year ago.
The bank’s operating expenses increased in the period under review to KSh4.06 billion compared to KSh3.51 billion recorded in 2019.
HF Group’s largest shareholder, Britam, recently revealed plans to sell part of its 48% ownership in the mortgage bank to a major bank in Kenya. The mortgage firm’s shares soared 46% following the announcement.
HF Group is a property and financial services company comprised of four subsidiaries; HFC, its banking arm, HF Development and Investment, HF Foundation, and HF Insurance Agency.
Also read: HF Group sinks into KSh 730.2 Million Net Loss, issues profit warning
