Housing Finance Limited (HFCK.ke) HY2019 Interim Report

We have extracted the Chief Executive Officer and Chairman’s Statement from the 2019 half year report of Housing Finance Limited (HFCK.ke), listed on the Nairobi Securities Exchange:

The Group Plc reported a performance improvement with a pre-tax loss of Kshs. 94.314 million, compared to Kshs. 642.74 million for the year ending 31 December 2018.

The Group’s Total Interest expenses have reduced by 9.80 percent to Kshs. 1.67 billion from Kshs. 1.85 billion during a similar period in 2018, on the back of the aggressive retail banking strategy that has seen the business lower the cost of funding and offsetting of outstanding debt worth Kshs. 1.5 billion. Non-funded income grew by 56% to Kshs. 914 million up from Kshs. 586 million during a similar period in 2018, on account of gains made on sale of assets.

The net Non-Performing Loan book shrunk by 13.14 percent to Kshs. 7.58 billion from Kshs 8.73 billion as at 31 December 2018. The reduction driven by the aggressive strategies put in place to contain non – performing loans (NPLs) including the property sales campaign dubbed “Shika Nyumba na HF Reloaded” has accelerated property sales on a mix of HF owned and financed developments with 335 units sold to date.

The business is on track to redeem in full the Kshs. 3 billion Corporate Bond in October 2019. This is the second tranche of the Kshs. 10 billion Bond issued in October 2010. The business will finance the bond repayment from its internal cash flows from operations. Our business transformation strategy is paying off and given the trend in performance for the first six months of 2019, we project a turnaround to profitability by end of 2019.


The directors do not recommend payment of an interim dividend.

Explanatory notes

The accounting policies used in the preparation of these financial statements are consistent with those used for the Group’s December, 2018 annual financial statements. The above financial statements are extracts from the records of the Group. They were approved for issue by the Board of Directors on 28 August, 2019.

Robert Kibaara 
Group Chief Executive Officer 

Steve Mainda
Group Chairman