HF Group has managed to reduce its losses in the first quarter to March by 99.6 percent to Sh633,000 from Sh158.2 million registered last year in the same period, highlighting lower costs.
HF, an established lender in the country, is shifting from mortgage finance to mainstream banking, which saw its expenses on operating and interests fall by double the value, which aided the offset reduce income from transactions and lending.
The operating expenses dropped by 10.7 percent to Sh827.1 million. This was partly contributed by the provision of bad debt, which fell by 23.4 percent to Sh137.6 million.
The non-performing loans dropped by 5.7 percent to Sh12.2 billion. However, HF said the results did not take into account the economic effects brought by coronavirus pandemic.
“Due to the shortest period of the pandemic in Kenya prior to the reporting date, there was insufficient data to analyses the impact of the virus. As a result, the financial statements for the period to March 31, 2020, have not been adjusted with the Covid-19 impact,” a statement from HF.
“If it is determined that additional impairments are required after assessments of the impacts such impairments will be taken into account in subsequent periods.”