Housing Finance posted 1H14 performance figures recording a 19.5%y/y jump in EPS to KES 2.01. The lender’s loans and advances rose 19.5%y/y while deposits improved by 7.0%y/y. NIR posted a 241.2%y/y jump which management attributed to its two key subsidiaries, Kenya Building Society and Housing Finance Insurance Agency. The company also had additional income from forex trading, for the first time, which added KES 17.09m to NIR. Net interest income on the other hand declined 3.1%. OPEX increased 22.2%y/y owing to investment in new branches, staff costs and investment in a new core banking system. Gross NPLs increased by 31.7%y/y. Housing Finance declared an interim dividend of KES 0.75. Going forward, management indicated that they are in the process of establishing a non-trading holding company in order to diversify business lines which will reduce reliance on interest income. The group will focus on mobilizing deposits from savings and current accounts as opposed to corporate deposits which have put pressure on the lender’s margins. Management also said that the planned KES 20bn bond issue will not be marketed in the short term as the debt market is expensive. The lender plans to leverage on its partnership with Britam to explore joint ventures. (Company filing, Standard Investment Bank)

Is this a good buy now?

Why is Equity bank cashing out of this diamond? And pre rights too boot?

Though member has made a significant loot from capital gains from 20/share to 41/share (intended selling price) and will earn around 1.2B. Very likely for member to post higher PBT than KCB in 2014 if member books that profit this year.

Again I ask why is member selling this diamond? Who sells their gold or diamond?

Where will HF get cheap loans from with member walking away?

@bird_man,mwekez@ji
When I said Equity bank was selling the HFCK stake to raise money for the mvno or equitel in another related topic I was very much criticised that I don't know what am saying.Now the reality is dawning on the people.
Equity even with the capital gains from the sale of HFCK KCB will still post a higher profit.

@Ericsson, that may be true but rumuors from some quarters also claim that they may have sold their stake in HFCK because they want to enter the mortgage market and doing that and holding a stake in HFCK at the same time may be viewed as a conflict of interest. I stand to be corrected on this.