Mortgage lender HF Group Plc has reported a Sh730.2 Million in Q3, 2020 from a loss of KSh 84.6 Million, triggering the lender to issue a profit alert.
“HF Group Plc projects that the net earnings for the year ended 31st December 2020 are expected to be substantially lower compared to the earnings reported for the same period in 2019. This is based on the un-audited results for the period to 30th September 2020, factoring in forecasts to the end of the year, and the preliminary evaluation made by the Board, with reference to figures and information currently available,” said Robert Kibaara, HF Group CEO.
HF’s pre-tax losses also widened to Sh671.7 Million from Sh81.4 Million while net loans to customers fell to Sh37.6 Billion in Q3, 2020, from Sh39.2 Billion in the nine months ended 30th September 2019.
At the end of Q3, 2020, the firm’s cash balances grew from Sh412.1 Million to Sh499.2 Million during the period under review.
However, HF’s balance sheet size shrunk to Sh55.1 Billion from the previous Sh57.4 Million as its loans to customers, the most vital component of the asset book shrunk.
Kenyans also deposited Sh34.6 Billion into the bank down from Sh38 Billion before Covid-19. The total Shareholders’ funds also declined in the period to Sh9.6 Billion from Sh10.4 Billion while the size of non-performing loans rose from Sh11.2 Billion to Sh12.6 Billion.
The firm now joins the likes of Britam, Unga Group, Kenya Airways, Kenya Orchards and Kenya Power in issuing profit warning amid the effects of the novel Coronavirus (Covid-19)
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