TrustBond consolidates foothold in mortgage market, invests N500m in NMRC
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IMAGE: Adeniyi Akinlusi, managing director, TrustBond Mortgage, »
In a move to consolidate its foothold in Nigeria’s mortgage market and consequently become a dominant force in the industry, TrustBond Mortgage Bank plc has secured the regulatory approval to invest N500 million as equity in the new Nigeria Mortgage Refinance Company (NMRC).
The new investment, according to the bank, is aimed at providing it with long-term funds at lower rates, adding that this will also provide it with funds to sustain future growth of the mortgage business.
Disclosing this at the 2013 annual general meeting, Etigwe Uwa, chairman, TrustBond Mortgage Bank, said because access to long-term funding was a sine-qua-non for successful mortgage banking operations, the bank will also seek to complement funding from NMRC with other sources of funds to continue to grow its mortgage business.
To Adeniyi Akinlusi, managing director, TrustBond Mortgage, the strategic investment in NMRC signposts the bank’s commitment to become a major player in the mortgage industry.
“The NMRC is a major initiative and we are working strongly with them,” he said, adding that the refinance company was getting its acts together and putting systems in place to be able to serve clients in need of mortgages by Q1 2015.
Expressing his confidence on the refinance company, Akinlusi maintained that all hands were on deck to ensure the initiative succeed, “because, there is a process flow for creating mortgages. You need to have the mortgage bank pre-qualify applicants, do the credit assessment to be sure they can meet up on what is expected of them before the NMRC will eventually start disbursing.”
Uwa further explained that in line with the new Central Bank of Nigeria’s (CBN) guidelines, the bank was also winding-down in real estate activities, even as it look to dispose its major real estate assets.
According to him, the company’s gross earnings for the year reduced by 1.12 percent from N866.7 million in 2012, to N856.98 million in 2013, while loss after tax in 2013 (from continuing operations) increased to N76.26 million from N22.2 million in 2012.
However, profit after tax for the financial year increased to N63.29 million from N36.55 million in 2012.
Highlighting other achievements of the bank in the outgoing year, Uwa revealed that the bank successfully raised its capital by N313.5 million under Special Placement exercise by the bank.
Article Credit: Businessdayonline