Home ECONOMY HF Group Posts Sh110.1 Million Loss On Huge Overhead Costs

HF Group Posts Sh110.1 Million Loss On Huge Overhead Costs

by biasharadigest

HF Group has reported a Ksh110.1 million loss for the full year ended 31 December 2019 on sky-high overhead costs, the housing finance company’s financial results show. The quoted loss is an 81.5% cut from the Ksh598.2 million loss reported the previous year

The Ksh598 million loss the lender reported for the period ended December 2018 was the first time that the group sunk into negative territory in over a decade forcing the company to restrategize and shut down the group’s loss-making investment unit. The move seems to be bearing fruit thus far.

The group’s balance sheet shows overhead costs standing at Ksh3.5 billion at the end of December 2019 down from Ksh4.2 billion the previous year which hampered the company’s ability to make any revenue.

Loss before tax stood at Ksh139.9 million down from Ksh651.6 million

Although the company has managed to reduce its losses by a huge margin, the same was not replicated in its bad loans department where Non-Perfoming Loans (NPLs) stand at Ksh12.3 billion down from Ksh13.3 billion the previous year. The same figures posted by the group’s banking wing.

Total interest income stood at Ksh5.1 billion down from Ksh6 billion during the period under review down while total non-interest income stood at Ksh1.4 billion up from Ksh1.3 billion during the period under review.

The group’s total operating income to Ksh3.3 billion down from Ksh3.5 billion the previous year.

Some Ksh1.41 billion was lent out to directors, shareholders and their close associates during the course of the year down from Ksh1.54 billion the previous year.

Amortisation charges (cost of reducing debts gradually) for the group stood at Ksh211.9 million down from Ksh199.9 million.

See Also>>> Family Bank’s Profit Trebles to Sh949 Million

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