HBFCL Announces Strong Profit After TAX of RS. 95 Million For First Half 2011
Karachi, August 29, 2011: House Building Finance Company Limited – HBFCL (previously known as the House Building Finance Corporation Limited), created history today by announcing an after-tax profit of Rs. 95.0 million for the first half of 2011, following up on annual profit after tax of Rs.113 million announced earlier this year on March 30. The landmark achievement is in sharp contrast to the after tax loss of Rs. 5.0 million in the same period last year. Under the leadership of the current management, the profits of the company have continued to increase, after continuous losses for the previous four years. During the period 2007-2009, the Company had registered an aggregate loss of Rs. 1,482 million.
The encouraging performance of the Company is evidence of the fact that HBFCL is no longer a burden on the national exchequer. Instead the Company has contributed substantial tax monies and is playing an important role in the development of housing business in the country. The results announced reveal that all financial indicators are positive, in spite of inflationary pressures, saturation of the housing mortgage market due to flood catastrophe, prevailing law and order situation, rising borrowing rates in the recent years and the additional cost the company had to bear for its Voluntary Severance Scheme (VSS) announced in 2010.
The sustained profitability of HBFCL follows the launch of a comprehensive transformation strategy in 2010, starting with the induction of highly professional management, which then brought about consumer-focused and prudent lending policies, launched an aggressive recovery drive and introduced various cost-cutting measures. The ongoing programme seeks to make HBFCL a streamlined, self-sustaining, efficient and customer-focused housing finance institution and augers well for the organization and its various stakeholders, including its borrowers, and promises continued growth in the future.
The most significant validation of the HBFCL turnaround is the JCR-VIS long-term and short-term ratings of ‘A’ and ‘A2’, respectively. This important milestone is a strong endorsement of the determination of the current management in attaining this rating.
The House Building Corporation Limited (‘HBFCL”) is now an unlisted Public Limited Company. Its Vision is “to be the prime housing finance institution of the country, providing affordable housing solutions to low and middle income groups of population by encouraging new constructions in small & medium housing (SMH) sector.” Since its inception it has provided a range of housing finance products and services for nearly half a million housing units.