Housing Finance 2014 pretax profit down 4pc

Housing Finance posted a 4 percent drop in 2014 profit before tax and exceptional items to Sh1.42 billion compared to Sh1.48 in the previous financial year.

The firm’s Managing Director Frank Ireri attributed the drop to commitment of resources to finance various projects.

“The performance during the year was affected by the heavy investment in building human resource to support the banking strategy, investment in the core banking system and branch expansion,” Mr Ireri said.

Net profit dropped to Sh975.3 million from Sh995.1 million in the previous year. He said its subsidiary, Kenya Building Society (KBS) has completed Gardens phase one, Kahawa downs, Komarock Phase 2 and K Mall will be completed this year. He said KBS is currently negotiating five joint venture projects that will contribute earnings in 2016-2017.

Earnings per share inched down to Sh4.21 in the period to end December from Sh4.31 in the previous year. The lender said it had cut the dividend per share to Sh1.50 from Sh1.75 in 2013.

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