Housing Finance Group (HF) has dropped into a loss for the first time in more than 10 years on reduced interest income that the mortgage lender previously blamed on the rate cap and a tough economic environment but the reality is now dawning on the shareholders that all is not well.
Fraud and silent customer bank run due to eroded customer confidence has seen the embattled HF post 598 million 2018 loss.
Bad loans rose Sh5.1 billion to Sh13.3 billion. This happened despite its loan book shrinking by Sh6.2 billion to Sh43 billion.
The tier-two lender saw its interest income drop by Sh1.08 billion to Sh6.045 billion as it struggled with reduced income from customer loans which dropped by 15 percent to Sh5.661 billion.
The editor of this site notes that HF is the only listed bank to post a loss for 2018.
The lender’s losses also dragged Britam to 2.2 billion loss
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