Abbey Building Society records N1.5m gross earning in 2009
Category: Capital Market
MONDAY, 14 JUNE 2010 BY HELEN OJI
Abbey Building Society Plc, one of the leading primary mortgage institutions has posted N1.51billion Gross Earning during its financial year ended October 31,2009 against N1.165 billion achieved in 2008 while profit after tax increased from N189.5 million in 2008 to N235 million in the year under review.
The company’s profit before tax also stood at N354 million, from N229 million recorded in 2008. The Managing Director of the company, Mrs Rose Okwechime explained that the percentage increase in gross earning is 29per cent while profit after tax grew by 24per cent.Okwechime noted that the company’s 18th Annual general meeting scheduled for Lagos on Wednesday, June 16, 2010 will afford the company the opportunity to table its projected plans before the shareholders for approval.
She attributed the company’s significant improvements over the years despite difficulties besetting the mortgage sub-sector to unrelenting efforts on the part of the board, management and staff of the company to ensure that the company remains focused in the industry adding that the result projects robust growth and a promising future for the company.
“This determination has paid off and the result is what has been manifested,” she stated.She noted that the company’s 18th yearly general meeting slated for Wednesday June 16, 2010 would afford the company the opportunity to table its plans before the shareholders for approval.Explaining further, Okwechime said the company has recently secured a US$10 million convertible loan from the Netherlands Development Corporation Company.
According to her, the company would use the loan in enhancing housing and mortgage facilities for cooperatives with good track records, as well as, support bona fide estate developers and corporate organisations in their housing projects.She noted that the loan is also expected to go a long way toward improving Nigerians increasing housing needs, enhance home ownership and generate employment.
“In Abbeys determination to meet and even supersede its set targets, in the area of home ownership, through partnership with estate developers and relevant government agencies have got Africinvest Financial Sector Limited of Tunisia to invest in the equity of Abbey to the tune of 1.25 million Euro convertible loan in April, 2008,” Okwechime said.She added that in October 2009, the company also had a facility loan of US$5 million from Shelter Afrique of Nairobi, Kenya to enable it further strengthening its core business of mortgage lending and construction finance in Nigeria.
Okwechime said there was no doubt that judging by the array of foreign institutional investors the company has been able to attract investors at a time when they are divesting and repatriating their capital away from Nigeria, adding that the company has been able to demonstrate its capacity, transparency and corporate governance to such investors.