This archive report was first published on 29 August 2019.
Published on August 29, 2019, Housing Finance Group reported a net loss of Ksh97 million during the first six months of this year, a stark contrast to the net profit of Ksh6.8 million recorded during a similar period last year.
The lender's total interest income plummeted by more than half to Ksh2.7 billion from Ksh6.05 billion, following a reduction in net loans and advances to customers from 47.5 billion shillings to 40.5 billion shillings.
Notably, the stock of non-performing loans accelerated from 8.86 billion shillings to 12.97 billion shillings during the period under review.
Interestingly, the financier increased insider loans advanced to directors, shareholders, and associates to 1.45 billion shillings, up from 46 million shillings a year earlier.
Meanwhile, National Bank of Kenya posted a net profit of 150 million shillings during the first six months of this year, attributed to growth in operating income and higher net interest income.
Despite trimming its loans and advances by 1 per cent to 47.3 billion shillings, National Bank saw its total interest income rise 7.3 per cent to 4.4 billion shillings.
