HF Group PLC, a multi-dimensional financial services provider, expects the coronavirus (COVID-19) crisis to hit its profit in the year ending Dec. 31, 2020.
In a cautionary announcement to investors, the group’s chief executive Robert Kibaara says the duration, severity, and volatility of the pandemic has resulted in a slowdown in the real estate sector credit growth adversely “affected the non-performing loans take out initiatives.”
“As a result, HF Group Plc projects that the net earnings for the year ended 31 December 2020 are expected to be substantially lower compared to the earnings reported for the same period in 2019.”
Kibaara said the performance is based on the unaudited results for the period to 30 September 2020 factoring in forecasts to the end of the year and current information available to the board.
The Group is listed on the Nairobi Securities Exchange (NSE) and has four operational subsidiaries which include HFC Limited, HF Development and Investment Limited, First Permanent (East Africa) Limited, HF Insurance Agency Limited and HF Foundation Limited.
The Group’s business turnaround strategy includes diversification to full-service banking while leveraging digital transformation to enhance operational efficiency, customer experience, and accessibility.