June 23, 2021, 1:00 pm, Victoria Island, Lagos Nigeria
Nigeria Mortgage Refinance Company Plc (NMRC) published its Annual Reports and Accounts for 2020 at its Annual General Meeting held at the Eko Hotel, Victoria Island, Lagos.
The Chairman, Mr. Charles Adeyemi Candide-Johnson (SAN), in his remarks stated that the pandemic had a significant negative impact on our sector, the slowdown of the economy resulted in job losses and default on mortgage obligations. NMRC’s investment income also came under pressure with historic decrease in interest rates.
Mr Candide-Johnson noted despite these challenges, profit before income tax decreased marginally from ₦3.097 billion in 2019 to ₦3.039 billion in 2020 while the company’s Balance Sheet increased from ₦72.867 billion in 2019 to ₦85.044 billion following the company’s series 3 bond issuance in November 2020.
NMRC’s Managing Director, Mr Kehinde Ogundimu in his comments stated that notwithstanding the significant fall in interest income, the company was able to flat-line profits by cutting down on expenses for a decent financial outcome during the year. Mr Ogundimu further noted that the company had a positive variance on expenses with total expenses decreasing by ₦0.44 billion from ₦2.32 billion in 2019 to ₦1.88 billion in 2020. Profit before income tax decreased marginally by 1.6% from ₦3.09 billion in 2019 to ₦3.04 billion in 2020.
In terms of other indices, the Managing Director also noted that earnings per share decreased by 1.4% from ₦1.42 in 2019 to ₦1.40 in 2020. Cost-to-income ratio improved from 42.8% in 2019 to 38.2% in 2020. Total assets at the end of 2020, was ₦85.4 billion, an increase of 17% from the 2019 balance of ₦72.9 billion. Capital adequacy ratio improved from 70% in 2019 to 80% in 2020, far greater than the regulatory requirement of 10%.
More details can be found on the Company’s Investor Relations page of its website at https://nmrc.com.ng/investor-relations/.