[2008-08-05]  Housing Finance shareholders get Shs3b in dividends payout
After yet another successful year of trading in which Housing Finance Bank made a profit of close to Shs6 billion, the Annual General Meeting of shareholders approved a 50 per cent dividend pay out of the net profit.

Subsequently, the bank’s directors declared a dividend of Shs2.9 billion to its three shareholders; National Social Security Fund (NSSF), the government and National Housing and Construction Company Ltd (NHCCL).
Accordingly, NSSF with 50 per cent shareholding received Shs1,497, 000,000 while government with 49.2 per cent shareholding received Shs1,472,459,016 and NHCCL with 0.82 per cent received Shs24,540,984.

“The bank has been operating profitably over the last year and has continued to register commendable progress as a business entity,” Mr Sam B. Rutega, one of the directors said while handing over cheques to the shareholders at Protea Hotel Kampala on July 31.

“Through this, the bank has continued to enhance shareholder value and meet customer needs by offering them value driven products, which are offered at very competitive prices,” he said.

Housing Finance became a fully-fledged Commercial Bank in October 2007. Before then, Housing Finance was a non-banking financial institution with a major stake in mortgage financing. Today, the bank still remains in its leadership position in the mortgage industry and has strategically re-organised itself to embrace greater opportunities in commercial banking.

NHCCL’s Chief Executive Officer Mr Joseph Kitamirike said the dividend NHCC received will go into housing; “The money we collect goes into construction,” Mr Kitamirike said.

In an effort to reach out to its diverse customer base, the bank has embarked on a branch roll out programme and is in advanced stages of opening up branches at Kikuubo Lane in Kampala and upcountry towns of Mbarara, Mbale, Gulu and Arua.

Housing Finance is the market leader in mortgage financing in Uganda with over 70 per cent market share as of December 2006.
“In the mortgage line of business, the bank will put emphasis on channeling mortgage finance to low and middle income earners throughout the country,” Mr Rutega said, adding: “These borrowers will be assisted to construct or purchase new housing units.

The resultant effect of this will be to increase its housing stock in the country hereby addressing the current shortage of decent housing in Uganda. The current shareholders of Housing Finance bank have paid up capital of Shs61 billion.
Source: © 2008 Monitor Publications Ltd