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HF Group Shareholders Approve Bonus Share Offer

BY Soko Directory Team · April 30, 2018 08:04 am

HF Group Shareholders have approved the issuance of bonus shares aimed at shoring up the Group’s share capital base. 

The decision ratified during the Group’s 52nd Annual General Meeting is subject to further regulatory approvals.

If granted, the Group which currently has 350 million paid up shares will issue additional 35 million shares at a price of 5 shillings per share. This will take the Group’s total fully paid-up share capital to 1.922 billion shillings.

“We are grateful to our shareholders for approving the bonus share as this shows the level of confidence they have in the future of HF Group. Following the approval, we will issue one new share for every 10 shares held by existing shareholders. This will help us raise 175 million shillings in reserves which we will capitalize,” said HF Group Chairman Mr Steve Mainda.

HF Group recorded a profit before tax of 311 million shillings for the period ending 31 December 2017, marking a 77 percent decline in profits compared to 2016, reflecting the unfavourable economic and fiscal environment on the back of protracted electioneering.

Based on the market outlook, the Group has reviewed its business strategy and shifted its focus to growth through leveraging digital channels, an initiative which is poised to attract return on investment in the next 18 – 24 months.

It has also up-scaled full service banking proposition targeting SMEs and retail customers, refocused on service delivery and customer experience which has seen the introduction of a 24-hour call centre and enhanced operational efficiencies, and introduced a new property development-operating model to reduce reliance on bank debt for project finance and end buyer mortgage finance in line with the apathy created by interest rate capping.

“The Group’s focus is on enhancing working capital access to SME customers, improving non-interest income and enhancing accessibility and convenience for its customers through investment in alternative channels including MasterCard, internet banking and a mobile banking application,” said Mr Frank Ireri, HF Group Managing Director. 

In 2017, the Group attracted financing of approximately 5 billion shillings from European Investment Bank and Ghana International Bank.

In March 2018, the Arab Bank for Economic Development in Africa (Badea) extend a 1.5-billion-shilling line of credit to HFC — the banking and property finance subsidiary of HF Group — which will play a pivotal role in the growth of HFC’s banking and specifically in financing the working capital and expansion of the bank’s growing SME customer base.

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