Mortgage loans by the Lagos Building Investment Company increased by 25 per cent from N511m in December 2020 to N638m in 2021, while customer’s deposits grew by 37 per cent and stood at N4.27bn in December 31, 2021, the LBIC has said.
The company disclosed this during its 17th Annual General Meeting where it presented the financial statements for the year ended December 31, 2021.
The Chairman of the Board, Hakeem Ogunniran, said the bank continued on a path of growth despite the challenging operating environment and the impact of COVID-19.
He said, “In 2021, the gross earnings increased by 58 per cent to N961m, from N581m. The operating profit before tax grew significantly by 25 per cent to N254m.
“There was a noticeable improvement with respect to fund mobilisation, as customer deposits grew by 37 per cent and stood at N4.27bn as at December 31, 2021.
“The bank continued to create quality mortgage loans in line with the underwriting standards of the Nigerian Mortgage Refinance Company, resulting in an increase in the value of mortgage loan portfolio by 25 per cent by December, 2021.”
Ogunniran noted that as inflation continued to outpace wage growth; disposable income would come under intense pressure.
“Hence, these factors will negatively affect the overall demand for home ownership in spite of the massive available market, due to the home deficit in Nigeria,” he said.
He added, “The bank is not relenting in its efforts to make mortgage loans very accessible to private individuals. The organisation’s commitment to reducing housing deficit has been seen as facilitating Lagos State Government’s delivery of various low-cost housing estates.
“The estates are in areas such as Ogba-Ijaiye, Amuwo-Odofin, Isolo, and so on. We have achieved practical completion on our Itesiwaju Court Project, and we are set to deliver same in 2022.
“The bank is working intensely to improve the shareholder’s fund so that the capital base of the bank will remain above the minimum capital requirement by the Central Bank of Nigeria for Primary Mortgage Banks.”