The Housing Finance Company (HFC), the banking arm of HF Group, has announced it has received approval from regulators to offer custodial services, allowing them to hold cash and other property on behalf of stockbrokers, pension schemes, corporates, investment banks, high-net-worth individuals, and fund managers at a fee.
HFC said it will provide cash management, escrow custody, core custody, and trustee and bond trading services.
The approvals from the Capital Markets Authority (CMA) and the Central Bank of Kenya allows HFC to provide a one-stop shop for banking services, putting it in the same level as some commercial banks.
“We also expect to significantly improve our financial position in the [medium-term] by locking in non-funded income revenue streams as well as boosting foreign exchange flows for the business,” Sam Waweru, HFC managing director said. “The value of assets under custody have appreciated over time because of a conducive interest rate environment and increased investor confidence.”
HF Group has incurred a loss in profits over the past 2 years. The Group’s net earnings dropped to Sh126.22 million in 2017 from Sh905.83 million in 2016 and Sh1.20 billion in 2015.