Housing Finance profit jumps by 58 per cent

HOUSING FINANCE: Growing customer numbers, real estate investment and product innovation combined to drive the growth during the period

BY JAMES  ANYANZWA

Mortgage financier, Housing Finance has announced a 58 per cent growth in pre-tax profit for the nine-month period ended September 30,  helped by product innovation.

The firm’s profit before tax (PBT) grew to Sh894.7 million from Sh563.3 million in a similar period last year.

Managing Director Frank Ireri (pictured) said growing customer numbers, real estate investment and product innovation largely drove the growth.

 “The company will continue to focus on organic growth and on connecting with customers through building strong lasting relationships and providing them with a wide choice of relevant investment solutions,” he said.

 core banking system

In a statement yesterday, Ireri said the firm is in the process of rolling out a new core banking system that will improve efficiencies and deliver new product offerings.

“The new banking system will be a next generation banking system, designed in a scalable way, so that it can be tailored to the changing needs of our customers,” he said.

According to the firm’s unaudited financial statements, income from loans and advances increased by Sh569 million to Sh3.66 billion from Sh3.09 billion. Total loans portfolio increased by Sh4.6 billion to Sh33.4 billion from Sh28.8 billion in a similar period last year.

Total operating income surged 41 per cent to Sh2.2 billion from 1.56 billion while customer deposits grew by Sh1.9 billion to Sh25.9 billion from Sh24 billion.

Housing Finance recently introduced “EZESHA”, a product that provides financing of up to 105 per cent of the property value.

The product is expected to increase the uptake of mortgages especially in the middle to lower end of the market, which is largely untapped.

Ireri said the property development subsidiary, Kenya Building Society, had successfully completed construction of the Komarock Phase 5A estate comprising 162 housing units. The subsidiary, he said, would soon unveil a proposed commercial centre development in Komarock.

The firm recently rolled out its Forex products to increase its non-interest income.   Ireri said despite a stable macro-economic environment, the key concern during the year is inflation. He said this is due to food and fuel, monetary policy and operationalisation of the National Land Commission.