Kenya mortgage finance specialist HF Group has released its financial results for the third quarter ended September 30, 2021. It shows that the financial institution reduced its net loss by 22% to 570 million shillings (5 million USD ) during the first 9 months of the year.
The Nairobi-listed company recorded a net loss of 730.21 million shillings (6.4 million USD) during the same period last year.
This performance was driven by growth in non-interest income and lower operating expenses. Indeed, the mortgage financier recorded a 12.2% growth in non-interest income while total operating expenses fell 12.5% to $ 21 million due to lower provisions allocated for potential defaults.
For its part, total operating income fell 9.4% to 1.83 billion shillings (16.2 million USD), due to a decrease in total interest on loans and government securities by 18, 4% to 2.95 billion shillings (26.2 million USD). The decline in interest was helped by the disbursement of credit to the private sector despite an accumulation of loans to the government.
HF Group, like other mortgage lenders, has suffered from the slowdown in the real estate market and more recently from the economic fallout from the Covid-19 pandemic, which has seen the loss-making company cut back on mortgage financing.