https://www.businessdailyafrica.com/bd/corporate/companies/hf-group-reports-first-q1-0-net-profit-in-four-years-3810960HF Group has posted a net profit in the three months to March period for the first time in four years on the back of growth in operating income and low loan provisioning.
The firm posted a net profit of Sh34.2 million in the first quarter of the year, a reversal from a Sh191.8 million net loss in the same period last year.
The performance in the first quarter could point to a net profit in the full-year period for the tier 2 bank that has been posting net losses since 2018.
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HF Group chief executive Robert Kibaara attributed the performance to a business transformation strategy that has seen the lender focus on growing its SME and retail banking and robust cost and non-performing loans management measures.
“Diversification into full banking has led to significant revenue growth, increase in inexpensive current and savings accounts (CASA) deposits, hence a significant reduction in the cost of funds. The bank has also benefited from growth in non-funded income emanating from diversified channels, growth in customer numbers and digital transactions,” said Mr Kibaara.
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The Group states that all its operating subsidiaries have turned to profitability over the period including the banking arm (HFC), HFDI and insurance agency.
The Group has completed the sale of its largest project, Komarock Heights apartments in Komarock estate with 480 units, and also commenced its titling process which once completed is expected to raise revenues as collected receivables and closure of the project.
The business has accelerated the sale of its property projects, having sold over 1100 houses over the last two years.
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