Housing Finance Issues Profit Warning in its FY 2017 Net Earnings

Housing Finance has issued a profit warning stating that its earnings for the year ended 31st December 2017 will be potentially 25 percent lower than that reported for the year ended 31st December 2016.

HF attributes it to as a result of the interest capping law introduced in August 2015 and “effects of the slow processing of transactions at the Ministry of Lands Registries, that have resulted in the slow liquidation of some of their project loans whose conveyance is in process.”

In its Q3 2017, the reported a decline of 81 percent in its Profits Before Tax.

It posted half-year after tax profit of KSh159 million for the period ending June 30, 2017 representing 74 per cent decline compared to a similar period in 2016.

“The drop in our performance is as a result of the prevailing impact of the interest rate capping law and the unfavourable macroeconomic environment that resulted in a significant drop in interest related income and an increase in interest related expenses,” said HF Group Managing Director Frank Ireri.