Housing Finance has released its unaudited financial results for the first quarter of 2012 (January-March) and has reported an 11.4% increase in profits after tax over the same period last year. The company’s loans and advances to customers have increased 39% from KES 20.36 billion as of 31st March 2011 to KES 26.46 billion as of 31st March 2012. Property and equipment has grown by KES 100 million (16.43%) over the same period last year. Customer deposits are up KES 2.1 billion while interest income from loans and advances are up 46.06% from KES 651 million to KES 951 million.
Staff costs at the firm went up by KES 27 million over the same period last year, from KES 134 million as of 31st March 2011 to KES 161 million as of 31st March 2012.
The firm credits the perfomance to cost management initiatives and credit risk minimization techniques as it highlights on its website:
Housing Finance cost management and credit risk measures have driven the mortgage firm to post an 11 percent growth in profit before tax in the first quarter of 2012 of Kshs 190 million up from Kshs 171 million in a similar period in 2011.
Managing Director, Mr. Frank Ireri, said the firm remains focused on risk management and operational efficiency through various cost management initiatives to sustain the growth.
“This growth came in a year when the business is facing several challenges including high cost of funds, high cost of living and high inflationary pressure brought on by increasing costs of goods and services,” said Mr. Ireri.
Sales however dropped by 38 percent to Kshs 2 billion against Kshs 3.3 billion realized last year. The firm attributes the drop to mortgage uptake following an increase in interest rates.
“We have witnessed a drop in mortgage sales which is mainly as a result of a rise in interest rates which mainly affected those entering the mortgage market,” said Mr. Ireri.