Housing Finance profits
May 04, 2007
HOUSING Finance Company’s net profit was marginally down to sh3.857b in 2006 compared to 2005 largely due to an increase in the cost of funds, a top official has said.
By Sylvia Juuko
HOUSING Finance Company’s net profit was marginally down to sh3.857b in 2006 compared to 2005 largely due to an increase in the cost of funds, a top official has said.
In 2005, the bank’s profit was sh3.889b. “Although our assets have grown, our profit was almost the same as the previous year’s because the cost of the money we on-lend is high, yet we are lending for long-term,†said Patrick Kabonero, the general manager.
According to last year’s annual results, the bank’s asset base expanded by 24% to sh132.1b from sh106.1b, boosted by growth in customer advances, deposits with other financial institutions plus cash and balances with the central bank.
“The growth in assets is good because it shows that more people are borrowing from us to buy and build houses,†Kabonero said.
The statement said loans and advances to customers increased by 26% to sh97b from sh78.0b in 2005.
Customer deposits also rose by 26% to over sh55.5b from sh43.9b.
“We expect to grow by 40% this year. There is a lot of demand for mortgages,†he said.
HOUSING Finance Company’s net profit was marginally down to sh3.857b in 2006 compared to 2005 largely due to an increase in the cost of funds, a top official has said.
In 2005, the bank’s profit was sh3.889b. “Although our assets have grown, our profit was almost the same as the previous year’s because the cost of the money we on-lend is high, yet we are lending for long-term,†said Patrick Kabonero, the general manager.
According to last year’s annual results, the bank’s asset base expanded by 24% to sh132.1b from sh106.1b, boosted by growth in customer advances, deposits with other financial institutions plus cash and balances with the central bank.
“The growth in assets is good because it shows that more people are borrowing from us to buy and build houses,†Kabonero said.
The statement said loans and advances to customers increased by 26% to sh97b from sh78.0b in 2005.
Customer deposits also rose by 26% to over sh55.5b from sh43.9b.
“We expect to grow by 40% this year. There is a lot of demand for mortgages,†he said.