Mortgage finance provider Housing Finance has posted a 74 per cent drop in half year after tax profit, recording Sh159 million for the period ending June 30, 2017 compared to a similar period last year.
The group’s managing director Frank Ireri attributed the dip to the impact of the interest rate capping law and the unfavourable macroeconomic environment.
Customer deposits declined by 6 per cent to Sh37.36 billion down from Sh39.75 billion recorded in 2016.
Loans and advances to customers also decreased by 1.3 per cent from Sh53.46 billion in 2016 to Sh52.76 billion in 2017. Non-performing loans increased during the period to Sh7.91 billion from Sh5.36 billion in 2016 due to stalled property transactions at the lands office and unfavourable macro-economic conditions.
Total Interest income recorded an 18.2 per cent dip over the period under review to Sh3.68 billion down from Sh4.49 billion recorded in 2016 while the net interest income reduced by 25 per cent from Sh2.09 billion in a similar period in 2016 to Sh1.559 billion.