NMRC Records A 164% PBT Growth in 2016 Despite Macroeconomic Challenges

11th Abuja Housing Show
July 31, 2017
January 30, 2018
At its recently concluded 3rd Annual General Meeting (AGM) held in Lagos August 2nd, the Nigeria Mortgage Refinance Company (NMRC) announced a significant 164% jump in PBT for 2016, up N1.28 billion from N487 million in 2015. Nigeria’s premier mortgage refinance company also recorded an impressive total of N8.2billion in mortgage refinancing in 2016, up from N1.8billion in 2015. Net Interest Income increased from N2.03 billion recorded in 2015 to N3.02 billion, while total assets stood at N40.8billion, an increase of N1.74billion over a prior period balance of N39.06 billion. These impressive results were recorded despite the harsh operating environment and challenges in the Nigerian economy.

Benefitting from the mortgage refinancing loans were the following member banks, in order of refinancing:

Imperial Homes - N1.7 billion
Trustbond Mortgage Bank - N778million
SunTrust Mortgage Bank - N1.3 billion
Homebase Mortgage Bank - N731 million
Stanbic IBTC - N1.8 billion
Sterling Bank - N1.6 billion
Abbey Mortgage Bank - N21.9million
Infinity Trust - 7 million.

Speaking at the AGM, Chairman of the Board of Directors of NMRC, Dr. Charles Okealaham, explained that the company was quite proactive in its mortgage refinancing function during the year under review; he remains optimistic about a turn-around in the economy due to the measures being implemented by the government, which will further enhance company’s performance in the months ahead.

He reiterated NMRC’s commitment to its long-term strategy of putting structures in place that will make affordable homeownership a reality for Nigerians: “We’re entering a period of falling inflation and interest rates; should these projections come to pass, our industry and indeed our company stand to benefit immensely,” he said.

Also speaking at the AGM, NMRC’s Managing Director/Chief Executive Officer, Prof. Charles Inyangete attributed the company’s 2016 impressive to a sustained investment in skilled human resources, strategic stakeholder engagement and deployment of innovative technology infrastructure to drive the implementation of a robust financial and operations strategy. He further disclosed that the company has opened discussions with multilateral agencies willing to provide credit enhancement products to support bond issuances for mortgage lending to the informal sector, which will create more market opportunities for financial inclusion, and capital market deepening.

NMRC’s is also collaborating with the Central Bank of Nigeria, the Mortgage Banking Association of Nigeria (MBAN) and other key housing market stakeholders to develop a uniform underwriting standard for the huge and untapped informal sector: “The initiative aims to extend affordable home ownership opportunities to the informal sector, in line with our entrenched commitment to promoting affordable home ownership,” he said.

Noting that while the prevailing high interest and inflation rates continue to pose an affordability challenge for home acquisition through mortgages for most borrowers, the company plans broaden its financial inclusion strategy by issuing the first mortgage-backed Sukuk bond later this year to attract non-interest based mortgages, to further drive down the interest rate burden on mortgage beneficiaries.

Again, consistent with its mandate to help develop the mortgage and housing markets in Nigeria NMRC has already deployed its award-winning Mortgage Market System (MMS) technology platform which streamlines and integrates systems and processes along the major components of the housing value chain to enhance efficiency and cost reduction, from land and titling to construction, to mortgage origination to refinancing and ultimately to securitization when the market becomes ready for such.

NMRC Member banks are already leveraging the MMS for their off-taker profiling and mortgage origination and administration functions, while the infrastructure is pivotal to the ongoing profiling of federal civil servants for pre-qualification for housing under the under the Federal Integrated Staff Housing Programme (FISH) being spearheaded by the Office of the Head of the Civil Service of the Federation.

The company is also set to deploy its transformative Housing and Mortgage Market Information Portal (HMIP) developed in collaboration with the National Bureau of Statistics, the Central Bank of Nigeria, the Federal Mortgage Bank of Nigeria (FMBN) and the Mortgage Banking Association of Nigeria. When live, the portal will become the go-to source for empirical data and information on the housing and mortgage markets in Nigeria, enabling better informed decision-making both on the part of policy makers and borrowers.

“The HMIP is an effective policy and decision-making tool on land allocation, infrastructure and concessions; it enables decision on creating polycentric cities to decongest major urban centres,” he disclosed, adding that pilot implementation of the initiative was already taking place in six cities including Abuja, Lagos, Kano, Bauchi, Enugu, Port Harcourt.

Further details of the company’s performance in 2016 can be gleaned from its Annual Report available on the website at this link: http://nmrc.com.ng/wp-content/uploads/2017/08/NMRC-AR-2016.pdf