The Nigerian Mortgage Refinance Company (NMRC) says it has grown its profit before tax (PBT) to N3.09 billion as at the end of its financial year ending December 31,2019. This represents a 60-percent increase in the ₦1.94 billion it recorded in the corresponding period in 2018.
Managing director and chief executive officer of the mortgage refinancing company, who disclosed this at the company’s annual general meeting (AGM) in Lagos on Wednesday, added that the company’s earnings per share increased to N1.43, up from N0.93 recorded in 2018, making it possible for the shareholders to approve a dividend payout of ₦0.43 per ordinary share.
Chairman of the company, Charles Adeyemi Candide-Johnson (SAN), had in his remarks, revealed that the company’s gross earnings increased by 36 percent from ₦7.09 billion in 2018 to ₦9.62 billion in 2019 while total Assets increased from ₦69.29 billion as at December 31, 2018 to ₦72.87 billion in the period under review.
The chairman commended the company’s impressive performance given that the year started with the anticipation of some headwinds to the business.
“Even though progress is being made, the company remains committed to its mandate of making housing finance more accessible and affordable for Nigerians, particularly in an era when housing availability has come to play a critical role in successfully mitigating the spread and impact of Covid-19,” he noted.
Ogundimu described 2019 as a good year for the company with record earnings as well as commendable improvements in its financial metrics.
He explained to BusinessDay in an interview that the key drivers of the company’s performance were mortgage refinancing and cost optimization with which they were able to cut off whatever was not necessary. “Our cost optimization measures continue to yield results as evidenced by the significant reduction in all our expense heads,” he said.
He assured that they would continue to build the industry, pointing out that their mortgage foreclosure law was, increasingly, gaining traction with many more states of the federation passing the bill into law.
He also revealed that their Electronic Mortgage Assets Registry which, he said, has financial backing from the Work Bank was also on course. He explained that the registry was aimed to facilitate seamless transfer of assets from an old to a new owner.
Despite the ravaging impact of coronavirus pandemic, Ogundimu is looking at 2020 with optimism. “We will continue to do our best for the company and for the industry; this is the first time, since inception, that we are paying dividend. Our shareholders will be expecting the same feat this year. But we have to temper expectations with reality,” he said.
A private sector-led company with public purpose of facilitating affordable housing delivery for low income earners, NMRC was incorporated on June 24, 2013 and obtained its final license to operate as a non-deposit taking financial institution from the Central Bank of Nigeria (CBN) on February 18, 2015.
It is a CBN-licensed mortgage liquidity facility with the core mandate of developing the primary and secondary mortgage markets. NMRC raises long-term funds from the capital market for mortgage refinancing and, by extension, promoting affordable housing development.