LBIC raises housing loan by 25% to N638m

Lagos Building Investment Company mortgage loans increased by 25% from N511 million in December 2020 to N638 million in 2021, while customer deposits increased by 37% to 4, N27 billion as of December 31, 2021, LBIC said.

The company announced this at its 17th annual general meeting where it presented the financial statements for the year ended December 31, 2021.

Chairman of the Board, Hakeem Ogunniran, said the bank continued on its growth path despite the challenging operating environment and the impact of COVID-19.

He said: “In 2021, gross revenue increased by 58% to N961 million from N581 million. Pre-tax operating profit increased significantly by 25% to N254 million.

“There has been a noticeable improvement in fund raising, with customer deposits increasing by 37% and amounting to N4.27 billion as of December 31, 2021.

“The bank has continued to originate quality mortgages in accordance with the Nigerian Mortgage Refinance Company underwriting standards resulting in an increase in the value of the mortgage portfolio by 25% by December 2021.”

Ogunniran noted that inflation continued to outpace wage growth; disposable income would be under intense pressure.

“Therefore, these factors will negatively affect the overall demand for home ownership despite the huge available market, owing to the real estate deficit in Nigeria,” he said.

He added: “The bank is not relaxing its efforts to make mortgage loans very accessible to individuals. The organization’s commitment to reducing the housing deficit has been seen as facilitating the Lagos State Government’s delivery of various low-cost housing estates.

“The estates are in areas such as Ogba-Ijaiye, Amuwo-Odofin, Isolo, etc. We have completed the practical realization of our Itesiwaju courtyard project, and we are ready to deliver it in 2022.

“The bank is working intensively to improve the shareholders’ fund so that the bank’s capital base remains above the minimum capital required by the Central Bank of Nigeria for primary mortgage banks.”

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