NMRC beats expectations, grows profit to N3.64bn amid headwinds

Despite very hostile macro-economic conditions in Nigeria, including galloping inflation, high interest rate and volatile exchange rate, all of which constitute very hostile business environment, the Nigeria Mortgage Refinance Company (NMRC)did well in its financials for the year ended December 31, 2023.

Though the company’s operating expenses was slightly elevated, closing at N2.27 billion and showing a marginal increase from the N2.03 billion recorded in the previous year, that was not enough to dampen its profitability figures in the year under review.

Kehinde Ogundimu, the company’s MD/CEO, revealed that the company was able to grow its profit before tax by 4.6 percent to N3.64 billion in 2023, up from N3.49 billion it recorded in 2022.

Ogundimu, who shared these figures in his statement at the company’s 10th Annual General Meeting (AGM) held in Lagos on Wednesday, added that the company also grew its gross earning by 2.1 percent from N10,1 billion in 2022 to N10.3 billion in 2023.

Their interest income rose by 7.16 percent, from N5.51 billion in 2022 to N5.91 billion in 2023. Similarly, the company’s earnings per share increased by 5.04 percent from N1.59 billion in 2022 to N1.67 billion in 2023 just as their mortgage refinance loan balance increased by 5 percent from N24.02 billion in 2022 to N25.22 billion in 2023.

Ogundimu disclosed further that the company grew its total equity by 10.5 percent from N23.2 percent in 2022 to N25.68 billion in 2023. “Capital Adequacy Ratio improved from 86 percent in 2022 to 90 percent which was significantly higher that the regulatory requirement of 10 percent,” he added.

Yemi Adeola, the chairman of the company, had in his statement at the AGM, highlighted some of the events that shaped the year under review, noted that with the conclusion of the general election earlier in February of that year, followed by a successful transition to a new administration three months later, the tone of that year was set.

He recalled that the new administration in the country embarked on bold reforms, most notably the removal of subsidy on petrol and the elimination of the multiple exchange rates regime with the attendant consequences of high inflation and further weakening of the naira.

But looking ahead, Adeola hopes that both monetary and fiscal reforms which the new government has embarked on as well as the growing investor-confidence in the country testifies to the general perception that there are better days ahead.

He shares the view that as the gains of the reforms begin to manifest, the nation will surpass the growth projection by the International Monetary Fund (IMF) which, according to him, has projected about 10 basis point below the global average of 3.1 percent in 2024.

On his part, Ogundimu assured that notwithstanding the current macro-economic challenges that further exacerbate access to affordable housing, “we remain committed to providing liquidity to the Nigerian housing market while managing the elevated risks.”

As a secondary mortgage market institution, NMRC is a private sector-driven mortgage refinancing company with the public purpose of promoting home ownership for Nigerians while deepening the primary and secondary mortgage markets.

The company’s mission in the mortgage market is to break barriers to homeownership, provide liquidity, affordability, accessibility and stability to the housing market in Nigeria. It is aimed to provide liquidity by refinancing mortgages originated by the primary mortgage banks for on-lending to mortgage applicants.

The company is meant, by so doing, to drag down mortgage interest rate from double digits to single digits which, by implication, makes mortgage not only affordable, but also accessible to Nigerians who need it.