Three Mortgage Banks Grant N42.3bn Loans In 2023

0 633

With the high rate of housing deficit in Nigeria, a total of three listed mortgage banks listed on the Nigerian Exchange Limited (NGX) and operating in the country granted N42.3 billion loans to customers in the 2023 financial year, about 50.5 per cent increase from N28.1 billion reported in 2022.

The three Mortgage Banks are Infinity Trust Mortgage Bank Plc, Living Trust Mortgage Bank Plc and  Abbey Mortgage Bank Plc.

In the 2023 financial year, Living Trust Mortgage Bank reported N12.79 billion in loans to customers, nearly 20 per cent higher than the N10.68 billion reported in 2022, while Abbey Mortgage Bank disbursed N14.14 billion in loans to mortgage loans to customers in 2023, a significant increase of 174 per cent from N5.16 billion reported in 2022.

In addition, Infinity Trust Mortgage Bank announced N15.4 billion in customer loans in 2023, about a 25 per cent increase from N12.3 billion in 2022.

The total loans by the three mortgage banks are relatively smaller to Banks such as Wema Bank which granted N801.1 billion as loans to customers in the 2023 financial year.

One of the key issues plaguing the mortgage system in Nigeria is the limited access to mortgage financing. Financial institutions often require high down payments, making it difficult for most citizens, particularly those in low and middle-income earners, to access mortgage loans.

The Nigerian mortgage system has long been a source of frustration for aspiring homeowners. Despite efforts by the government and financial institutions to improve accessibility, the mortgage system continues to falter, hindering the dreams of countless Nigerians to own their homes.

According to a report, the housing deficit in Nigeria has surged from 14 million units in 2010 to a staggering 28 million units in 2022, marking a remarkable 100 percent increase over the past 1.2 decades.

“As of 2023, the housing deficit stands at 28 million units, requiring an estimated N21 trillion to rectify the situation,” the report added.

The National Bureau of Statistics (NBS) stated that real estate on an annual basis recorded a growth of 1.68 per cent, lower than the 3.95 per cent recorded in 2022.

“It contributed 6.06 per cent to real GDP in Q4 2023, lower than the 6.18 per cent it recorded in the corresponding quarter of 2022” the report by NBS added.

In 2023, the three mortgage Banks declared N78.5 billion in total assets, representing an increase of nearly 37 per cent from N57.32 billion declared in the 2022 financial year.

The Chairman, Infinity Trust Mortgage Bank, Adeyinka Bibilari, stated that the bank disbursed a total of N7.94 billion in loans in 2023 and closed the year with loan assets valued at N15.3 billion.

He noted that “Our Balance sheet expanded by 23 percent, from N16.7 billion in 2022 to N20.6 billion in 2023. While shareholders’ funds grew by 10 percent which shows the strength of the Bank in implementing our strategy to meet its set corporate objectives.

“Customer deposits increased from N3.2 billion in 2022 to N4.41billion in 2023, while our debit on-lending and refinancing activities witnessed a growth of 31 per cent from N5.41 billion in 2022 to N7.09 billion in 2023, due to investor confidence in the Bank.

Bibilari stated that demand for mortgage finance would continue to increase, particularly from individual mortgagors, although interest rates and affordability constraints remain major challenges due to high interest rates, stressing that, “we will not relent in our target to capture more market share because we are well placed to take advantage of the opportunities that will undoubtedly arise this year.”

He added, “We hope to create a healthy dynamic Bank of good value to the stakeholders in 2023. It is clear that Banking remains a risk-based industry, therefore, we shall remain prudent in our management and pricing of risk to balance our risk and returns.

“Although the disruptive challenges persist, we see a lot of opportunities and are optimistic that our Bank will sail through to record a better performance. We will remain vigilant and focused while taking nothing for granted on the key value drivers of our business.

“Our strength remains strong on risk management and sound corporate governance. We will continue to build on our relations with the Government, Development Partners, and other stakeholders for the development of our bottom line. In furtherance of our vision, we shall focus on driving down interest expense to create affordable mortgage finance products for our esteemed customers.”