- FMBN Returns to Profitability, Posts N2.7bn Operating Surplus
The Federal Mortgage Bank of Nigeria (FMBN) has posted operating surplus of N2.7 billion for the year ended December 2016, marking the bank’s return to profitability for the first time in over two decades.
This was one of a number of highlights at the bank’s 2016 Business Performance Review Session, which took place between 25th and 27th January, 2017 in Abuja.
The bi-annual programme was conceived to provide an opportunity for groups and field offices to report on their key performance indicators, identify critical factors affecting performance, and proffer pragmatic solutions. Additionally, the session allows for brainstorming on strategies for improved performance and sustained growth in the immediate future and a review of the broad provisions of the 2017 budget and communicate its goals to the top management of the bank.
Speaking during the programme, acting Managing Director/Chief Executive of FMBN, Mr. Richard Esin, said the Honourable Minister of Power, Works and Housing, Mr. Babatunde Fashola, appreciated and commended staff for their efforts and achievement in 2016.
He added that the minister was optimistic of the year ahead, as he was expecting the bank’s efforts in the past year to evolve into significant results in 2017.
Other highlights of the performance in 2016 was the N9 billion approved by the minister for the creation of 1,244 mortgage loans across the country, under the National Housing Fund (NHF) Scheme; the disbursement of the sum of N1.2billion to over 1,600 beneficiaries under the Bank’s Home Renovation Loan Scheme; the disbursement of the sum of N2.722 billion to 22,716 retired contributors as refunds, in line with the NHF Act.
Meanwhile, the bank had secured the approval of the Minister to capitalise equity contribution and perfection fees for mortgage applications of N5 million and below, for the Bank’s funded estates nationwide in a bid to ensure easier access to the NHF loan scheme for low income earners.
This means that Loan applicants will now have 24 months to pay the associated equity contributions and perfection fees for loan amounts under N5 million threshold, which would normally attract upfront equity contribution of 10 per cent of the loan amount.
Esin stressed the need to be proactive in the face of the anticipated increase in the supply of mortgage-able housing stock, which will be brought on stream through various efforts of the bank and the federal government including the National Housing Model expected to deliver 30,000 housing.