After a dip in performance last year, Omoluabi Bank saw significant improvement as it grew profit by the most since 2007, helped by improvements in interest and similar income, and turnover.
The Osun-based mortgage lender saw profit increase by 37.7 percent to N62.65 million for mid-year 2019 period. Omoluabi in 2017 had recorded a 39.2 percent surge in profit but bottom-line faltered -1.4 percent last year.
In 2019 half-year period, turnover increased by 8 percent to N247.14 million compared to N227.91 million a year ago. This was facilitated by a 13.7 percent rise in turnover noted in the second quarter.
Interest and similar income earned by the bank in the six-month period was N105.04 million, 63.23 percent more than N64.35 million made in 2018.
Even though interest expenses increased sharply by some 34 percent, the net interest income of the bank rose 74 percent in the period under review.
Fees and commission income slowed in the period to N17.58 million, 18.84 percent less than the bank noted last year. Given that there was no fees and commission expenses in the half-year, net fees and commission income reflected only changes in inflows.
Other operating income was down 11 percent year-on-year but total operating income improved some 6.34 percent to N223.67 million, the same value as net operating income given there was no credit loss expense in the period.
Total operating expenses trended lower to N161 million, down 2.3 percent in 2019 half-year. Omoluabi’s profit in the period rose to N62.65 million or N1.25 per share unit from 91 kobo in the corresponding period of 2018.
Omoluabi is a primary mortgage institution that is regulated by the Other Financial Institution department of the Central Bank of Nigeria (CBN)
The core business model of Omoluabi involves residential and commercial mortgage financing as well as construction finance among other services.
Omoluabi is the first-listed firm on the Alternative Securities Market of the Lagos bourse, with Morgan Capital Securities Limited and Osun State & Local Government as major investors with 83 percent shareholding.
SEGUN ADAMS
