Shareholders of mortgage and property group, Housing Finance could close the year without dividends if nine months financial statements released today are anything to go by.
The company’s net profit dropped 81 percent to Sh159 million according to the results for period ending September 30, 2017 compared to Sh837.7 million a similar period last year.
A statement from the group accompanying the financial statements forwarded to Nairobi securities Exchange (NSE) blamed the poor performance on slowdown in the property market and the interest rate capping.
In a development that will raise shareholders’ eyebrows, the firm also shed off Sh3 billion from its asset book while bad loans soared 47.2 percent to Sh8.1 billion from Sh5.5 billion.
But the group exuded confidence of recovery from the poor performance.
The statement from the group quoted Group Managing Director Frank Ireri saying performance would improve in the last quarter of the year.
“Ireri said the group performance is expected to pick from the fourth quarter when Komarock Heights and Richland projects are completed. He also said normalization of the property conveyance process ar the ministry of lands registry will benefit the group by releasing funds tied to incomplete transactions as well as improve asset quality as financed projects are closed,” said the firm in the statement.