Kenya: House Finance narrows full-year net loss to Sh593.29 million

House Finance Group has narrowed its net loss by 65.2% in the year to December 2021 supported by fees and commission from loans and a reduction in running costs.

HF Group posted a net loss of Sh593.29 million in 2021 from Sh1.71 billion in 2020.

The Nairobi Securities Exchange-listed firm has not announced any dividend, making a four-year consecutive since 2017, of a payout drought to shareholders and posting net losses.

The firm’s cash flow has been distressed following a hit on the property development business that was compounded by the economic hardships of the pandemic making it difficult for homebuyers to purchase houses.

HF Group’s total non-interest income from fees and commission increased by 5.0% to Sh538.12 million.

Operating expenses dropped by 20.5% to Sh3.22 billion amid a drop in provisions for bad debt and a marginal decline in staff costs.

Total interest income dropped by 8.0% to Sh3.92 billion due to a shrink in loan book and investment in fixed incomes securities.

Net loans and advances dropped by 6.2% to Sh34.69 billion. Its stock held with government securities dropped by 6.0% to Sh1.82 billion.