Housing Finance (HF) Group Housing Finance (HF) Group has sunk deeper into loss-making with its nine-month loss extending almost eight times to Sh730.2 million.
HF attributed its loss in the period ending on September 30 from Sh84.6 million last year to low operating income as both interest and non-interest income streams dried up.
The group also projects a not so rosy performance next year.
“HF Group projects that the net earnings for the year ended December 31, 2021 will be substantially lower compared to the earnings reported in the same period in 2019,” said HF in a statement.
HF’s total operating income plunged by 28.6 per cent to Sh2 billion, this as the interest income also decreased to Sh3.6 billion from Sh4.1billion in 2019.
Based on the statement, non-interest funded income also shrunk to Sh404.2 million from Sh1.1 billion in the same period last year.
HF however reduced its total operating costs to Sh4.7 billion from Sh5.3billion and the group credited this to lower loan-loss provisioning.
The bank at the same time improved on its assets even as gross non-performing loans decreased from Sh12.7 billion last year to Sh11.2 billion.
HF blamed is rising loss adverse effects of the Covid-19 pandemic and issued a profit warning on the earnings it expects at the end of the year.
HF Group ended 2019 with a loss of Sh110.1 million.