Omoluabi Mortgage Bank has set its focus on growing the housing development and mortgage business of the bank in its bid to grow profits and expand business horizon.This was disclosed by the Chief Executive Officer of the bank, Ayo Olowookere, when the Chairman of the board, Dr Adebayo Jimoh, led top management of the bank to present the facts behind the figures for the company’s performance in 2016 financial year and first quarter 2017 at the floor of the Nigeria Stock Exchange (NSE) in Lagos.
In his presentation, Olowookere said: “the bank will position itself as key player in the mortgage subsector along the southwest corridor of Osun, Lagos, Ogun, Oyo, Ondo, Ekiti, Kwara, and Edo states through its products and efficient cum effective marketing, penetrating and dominating service delivery and quick response time.”
He added that the management is determined to target the informal sector and design specific micro-mortgage products for households. The bank he noted would also affect portfolio rebalancing to reallocate assets to higher yielding segments and grow low-cost deposits using business process and branch network optimisation.
Olowookere, who noted that 2016 was his first complete financial year, having taken the saddle in November 2015, noted that the management team is entirely new. This he added brought about the needed impetus and innovations that saw the bank performed creditably well in 2016 as well as the result recorded in Q1 ‘17.
Omoluabi Mortgage Bank posted N78.9m in profits in 2016 having recorded a loss of N161.5million in 2015. The bank also recorded 42 per cent growth in gross earnings, while its loan loss portfolio dropped by 42 percentage to N206 million from N354 million recorded in 2015 financial year. The bank also grew its deposits from N147 million in 2015 to N206 million in 2016, this represents 194 percentage growth.
Similarly, the bank has started 2017 on a positive note. The first quarter results showed the bank posted N11.4 million profit against N4.2 million recorded in the same period in 2015. The gross earnings for the period also grew by 17 per cent. The bank has also increased its customer deposits by 328 per cent as it recorded N536billion against N125 million for the same period in the preceding year.
On the strategies to achieve its projections going forward, Olowookere noted that the bank is focused on re-aligning its products and services offerings. He said the bank is refocusing mortgage business, restructuring its risk assets and liability products as well as engaging partners along the mortgage industry value chain.
He added that the bank will use technological innovations to drive profitability as it is using its ATM deployed in all three branches it is operating for now. The bank, according to him has also commenced the implementation of integration of branchless banking on the BankOne platform.
On capital plan, the bank said it hoped to implement Tier 1 & 2 capital raise this year and also grow balance sheet and take up more projects and mortgage financing opportunities.
The bank said its working towards transition from the current state-mortgage bank status to a national-mortgage bank status and play actively across the identified corridor and beyond. The bank is looking at spreading its operational tentacles to Lagos and Abuja.
The CEO of the Exchange, Oscar Onyema, who spoke through Haruna Jalo-Waziri, Executive Director, Capital Markets Division, disclosed that the NSE management is pleased that Omoluabi Mortgage Bank has taken bold step to further engage the market via “its impressive financial performance, strategy and operational developments.
“Knowing the market is information driven, it is inherent to capitalise on these opportunities to share relevant and accurate information to further strengthen shareholders’ involvement.”He promised that the Exchange will continue to provide the needed platform to support listed corporates in order to meet the strategic business objectives