Aso Savings and Loans plc, a mortgage institution, has reverted to profitability.
The 2013 audited financial statements showed profit after tax (PAT) increased by 205.42 percent to N207.51 million compared with N117.14 million losses recorded in the corresponding period of (FY 13), while gross earnings rose by an abysmal 1.47 percent to N10.30 billion.
A remarkable gain in employment and consumer confidence would make Nigerians more likely to marry early, have children and own a home. Additionally, low borrowing costs and more access to credit would raise the odds that a household will decide to a property rather than rent, which is positive for Aso Savings.
Nigeria already has 17 million housing deficit to bridge in order to put shelter over the heads of over 75 million people.
Despite reverting to profitability, Aso Savings’ efficiency is questionable as it had most of its profits swallowed by operating expenses culminating in a high cost to income ratio of 95 percent.
This resulted in a low net margin of 6 percent though higher than the 3 percent recorded in the corresponding period of last year.
Total operating expenses in the review period increased by 5.35 percent to N5.48 billion percent from N5.79 billion, thanks to a 68 percent reduction in other operating expenses to N1.63 billion.
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Total assets were up by 8.67 percent to N87.12 billion from N80.17 billion the preceding year, while total equity increased by 155.02 percent to N5.33 billion. Accumulated losses in the balance sheet stood at N2.60 billion in the review period.
The bank has just completed the newly luxurious ASO Grove Estate with a view to increasing its share of the real estate market.
ASO Savings and Loans is a Primary Mortgage Institution (PMI), incorporated in Nigeria as a limited liability company on November 9, 1995.
It commenced business on January 2, 1997, and converted to a public liability company on September 22, 2005.
Analysts expect a strong consumer disposable income in the future as they also say the rapid urbanisation and the expected resurgent middle class will drive the growth of the firm.
BALA AUGIE
