LBIC commits to strategic growth, grows earnings by 59%

The Lagos Building Investment Company (LBIC) Plc has restated its commitment to implement strategic initiatives towards restructuring business and tapping into previously unexplored high-potential areas of the industry.

Chairman, Board of Directors of the Company Plc, Hakeem Ogunniran, said this at the 19th yearly general meeting (AGM) of the LBIC in Lagos. He said the bank is diligently working to enhance shareholders’ funds, ensuring that the capital base exceeds the minimum requirement set by the Central Bank of Nigeria for Primary Mortgage Bank.

Ogunniran disclosed that the review of the 2023 result shows a strong performance by the bank despite the unfavorable operating environment characterised by galloping inflation and other macro headwinds.

According to him, the Gross Earnings of the bank grew by 28 per cent from N1.256 billion to N1.608 billion with a Profit before tax of N829 million, representing a growth of 59 per cent over the N522 million profit recorded in the previous year ended December 2022.

He revealed that the mortgage loans portfolio improved by 29 per cent from N572 million in December 2022 to N737 million unimpaired as of December 2023, while customers’ deposits increased by 10 per cent to 4.596billion from N4.168billion in December 2022.

“The Bank maintained a well-structured and diversified balance sheet with Total assets and Shareholders’ Funds closing at N9.517 billion and N4.087 billion respectively. The Full Impact of Capital Adequacy Ratio (CAR) remained very strong, closing at 36 per cent. Overall, asset quality remains stable with NPL ratio maintained at 0.00 per cent as of December 2023,” he said.

The Chairman said the company’s operational philosophy is deeply rooted in robust governance principles, adding that the Board maintains a steadfast commitment to the highest standards of good governance; driven by its well-known pillars and the National Code of Corporate Governance.

“The current management is tirelessly working to ensure that the bank not only maintains its current profitability but also achieves its goal of becoming the leading Primary Mortgage Bank in the State. Every effort is being made to achieve these objectives,” he added.

The New Managing Director of the company, Olusola Faleye, said the company is focused on the digitisation of its operations to improve access by stakeholders and customers as well as expand the reach of the company to international customers.

Expanding further on the digitisation journey, immediate past Managing Director/Chief Executive Officer of the LBIC, Tobiloba Lawal, said the company is poised to solidify its position as a leader in digital transformation within the financial sector to enhance its operational efficiency, customer experience, and overall competitiveness.

Lawal said the strategic imperatives will be reinforced to significantly enhance the bank’s bottom line by pursuing a significant multiplication of Mortgage Contributors in LBIC, acceleration of home ownership in Lagos state, and facilitating local and foreign direct investment.