NAIROBI: Housing Finance could soon become a regional bank in a move aimed at expanding its mortgage lending base, managing director Frank Ireri told the annual general meeting on Friday.He said the company is exploring two opportunities outside Kenya which could greatly boost the lenders interest income.
HF’s 2014 full year after tax profit dropped two per cent to Sh975.34 million from Sh995.19 million in 2013 on account of delayed completion of key housing projects.
“We had a board meeting on Tuesday where we discussed about regional expansion but we will give more information once progress is made. We are also doing well in our county expansion strategy which will help to solidify our presence in Kenya,” he said.
He said the profit slackened following delays to complete the Komarock Phase 5B and Komarock Mall projects which kicked off in 2014 under its subsidiary – Kenya Building Society.
“We expect 2015 to be much better after the completion of these projects. We will also be breaking ground for new projects every year to ensure KBS profits are substantial year-on-year,” he said.
HF’s mortgage lending increased by 44 per cent to Sh45.24 billion in 2014 up from Sh31.25 billion in 2013. This boosted the total interest income by 17 per cent to Sh6.37 billion up from Sh5.44 billion.Total assets increased by 28 per cent to Sh60.96 billion up from Sh47.29 billion in 2013.
Net non-performing loans stood at Sh3.14 billion from Sh2.49 billion which was attributed to the new Land Act.
“The performance was achieved against a difficult trading environment characterised by security risks, high cost of funds and the implementation of new legislation,” Ireri said.
He said the 2015 quarter one results will be released next week, subject to Central Bank of Kenya approval.The shareholders approved a dividend pay of Sh1.50 per share.
