Abbey Mortgage Bank Plc’s second quarter earnings have risen even amid economic uncertainties, thanks to efficient liability generation and asset optimization as the company continues to deliver more value to its customers.
The mortgage bank that is pivotal to the country’s construction architecture and in the forefront of the government mission of shrinking the 17 million housing deficit saw net income spike by 45.73 percent to N354.11 million as at June 2022 from N243 million as at June 2021.
Interest income increased by 81 percent to N2.19 billion in the period under review from N1.21 billion as at June 2021.
A breakdown of revenue shows interest income on cash and short-term funds was up 74.91 percent to N1.72 billion as at June 2022 from N983.13 million as at June 2021.
Operating profit increased by 61.91 percent to N1.23 billion in the period under review from N739.05 million as at June 2021.
Abbey Mortgage said its strategic focus is to improve earnings capability, increase brand awareness/business realignment, continue investment in human capital and drive electronic/digital channels deployment and optimisation to enhance internal capacity and improve service delivery to our customers.
The bank added plans to reposition itself for improved business growth in a digital world as well as delivering more value to its customers.
Mortgage finance is the life blood of housing construction, but the performance of housing finance and institutions has been unsatisfactory and abysmally poor.
The industry is beset with underdevelopment of the land tenure system and lack of affordability as inflationary pressures have ballooned mortgage rates and house prices.
Other factors undermining the mortgage market in Africa includes: absence of information for risk assessment; lack of long-term funding; and title insecurities. It is against this backdrop that we examine the impact of mortgage financing on housing development in Nigeria.