NMRC surmount headwinds as earnings surge 163.15%


July 4, 2017 | 2:06 am
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Nigeria Mortgage Refinancing Company (NMRC) has surmounted the harsh economic and operating environment to remain profitable as earnings surged 163.15 percent in 2016. The performance of the mortgage giant means it is delivering on its core mandate of unlocking opportunities for shareholders.

For the year ended December 2016, net income moved to N1.27 billion from N482.52 million as at December 2015.

Total income increased by 49.60 percent to N3.02 billion in the period under review while interest income on loans and advances jumped by 65.17 percent to N5.17 billion.

NMRC is efficient amid a tough and unpredictable macroeconomic condition as net margin increased to 42.05 percent in the period under review from 23.86 percent the previous year.

The company has used the resources of its owners in generating increased wealth as return on equity (ROE) increased to 18.30 percent in 2016 from 6.20 percent in 2015.

NMRC said it is the aspiration of the company to grow the mortgage market to 3 percent of GDP with a mortgage pool of 450,000 mortgages by 2019.

“The strategic pillars of our business are to deepen mortgage  coverage  as  we  aggressively  drive  the  use  of  mortgages,  increase capital market access through our issue of long-term loans, according to the company,” the company said in a statement.

Analysts say before such aspiration can be achieved, operators in the real estate and mortgage industry will have to overcome the stumbling blocks undermining the growth.

Nigeria mortgage lenders are grappling with unpaid loans as rising inflation, a weak naira and high job losses hinder customers from meeting their obligation.

At least 55 percent of the mortgage industry’s 94 billion naira ($300 million) loans is classified as non-performing, Nigeria Deposit Insurance Corporation, the Abuja-based industry regulator, said in February.

Nigeria’s economy fell by 0.52 percent in 2016, according to the National Bureau of Statistics (NBS). Inflation for the month of May stood at 17.20 percent.

Unemployment rate rose to 14.20 per cent in the fourth quarter of 2016, from 13.90 percent the preceding quarter of that year.

Nigeria needs N60 trillion to bridge the 17 million housing gap, according to Ahmed Musa Dangiwa, Managing Director of the Federal Mortgage Bank of Nigeria, FMBN,

Further analysis of NMRC’s financial statement shows shareholders fund increased by 10.82 per cent in to N8.62 billion December 2016 from N7.77 billion as at December 2015, driven primarily by accretion from the current year’s profit.

NMRC’s total assets was up 4.39 percent to N40.70 billion, thanks to 330.85 percent surge in mortgage refinance loans and an investment of N16.95 in held-to-maturity securities.

Launched a couple of years ago, NMRC is a private sector-driven company with the public purpose of developing the primary and secondary mortgage markets by raising long term funds from the domestic capital market as well as foreign markets for providing accessible and affordable housing in Nigeria.





July 4, 2017 | 2:06 am
  |     |     |   Start Conversation

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