The Lagos State Government has said it will continue to partner with the Lagos Building Investment Company (LBIC) Plc in the provision of affordable housing for Lagosians.
The Special Adviser to the Governor on Housing, Mrs Toke Benson Awoyinka said this on Wednesday at the 14th LBIC Annual General Meeting which took place at its Ikeja Headquarters.
She also said the government would be increasing its stake in the company as its major shareholder in order to continue to leverage on its capacity to provide affordable housing for the people.
Earlier the shareholders had among other resolutions approved the increase of the minimum capital base from N4 billion to N10 billion divided into 10 billion ordinary shares of the company.
They also approved to raise the capital from local, foreign or other investors whether by public offering, private placement, rights issue or other methods through the issuance of ordinary shares of the bank for such equity.
The Board chairman, Mr Adesina Soyebo said new capital base would enable mortgage bank be a major player in the mortgage sub-sector of the financial market.
According to him, the new share capital was in line with current business realities aimed at making the company become a major player in the mortgage sector.
He said the company’s gross earnings grew by 93 percent from N285 million recorded in 2017 to N551 million in 2018, a development which earned the company a departure from its loss position resulting to a profit before tax of N43.5 million.
Also, customers’ deposit grew by 73 percent and stood at at N2.09 billion as at December 2018.
”The company has continued to grow quality mortgage loans in line with underwriting standards of the Nigeria Mortgage Refinancing Company (NMRC),” the board chairman said.
Soyebo said the LBIC closed 2018 shareholder’s fund of N2.869 billion and a total asset of N6.106 billion, while non- performing loan ratio improved by 27 percent from 87 percent in December 2017. Capital adequacy also closed at 55 percent a performance that is above the regulatory requirement of 10 percent.
The Managing Director, Mrs Folashade Folivi said the company, in the past three years have continued on a path of growth despite the challenging environment.
She expressed hope that the bank will reduce housing deficit in the state.
She said the bank, in line with automation of the company’s processes would install automatic teller machines, ATM in choice locations, especially in all its estates.