The Lagos Building Investment Company (LBIC) has unveiled a 43 per cent increase in its profit before tax to N1.65 billion for the 2025 financial year, up from N1.16 billion recorded in the previous year.

The mortgage lender has also intensified plans to raise capital and deepen expansion.
This announcement was made at the company’s Annual General Meeting (AGM) held in Lagos yesterday.

Chairman of the Board, LBIC, Hakeem Ogunniran, reported a sharp rise in its mortgage loan portfolio, which grew from N794 million in 2024 to N2.07 billion in 2025, with no impairments recorded, underscoring improved asset quality amid a challenging operating environment.

Other financial indicators showed strong performance, with gross earnings rising by 41 per cent from N2.54 billion to N3.56 billion.

Ogunniran said the results reflected the resilience of the company’s strategy and its focus on core mortgage operations.

He said: “I mean, clearly you can see that all the indices were very good. Shareholders’ fund, mortgage creation, gross earnings, PBT, and, for the second time, we are paying a dividend this year.

“We are also issuing bonus shares to further compensate our shareholders, which is an indication of the strength of the performance of the company.”

Ogunniran added that despite macroeconomic pressures, the company’s strategic direction had continued to deliver positive results.

He added that partnerships with institutions within Lagos State to finance housing project offtakers had strengthened cash earnings and positioned the firm for sustained growth.

On the outlook for the 2026 financial year period, Ogunniran expressed optimism about the year, citing strong first-quarter performance.

Also, Managing Director and Chief Executive Officer of LBIC, Olusola Faleye, said the firm was strengthening its financial position to expand access to affordable housing.

Faleye noted that bridging the housing gap remained a critical priority, adding that LBIC was aligning its strategies with government efforts to reduce the deficit and improve home ownership across the state and beyond.

According to him, the company recorded a milestone last year with the payment of its first-ever dividend, a move he said signalled improved performance and a commitment to rewarding shareholders.

“For the first time last year, we paid a dividend in the history of LBIC. Our commitment is to ensure that we continue that trajectory. We are going to be paying dividends, we are going to be issuing a bonus for every 15 units,” he said.

He observed that across Africa, many people still lacked awareness of flexible home ownership models, stressing that mortgage institutions had a role to play in deepening financial inclusion in the housing sector.

Faleye added that LBIC’s state backing provided a competitive advantage in accessing low-cost funding, which can be deployed to support mortgage financing.

“Generally, if you look at the continent in Africa, people don’t really understand that they don’t have to own a total amount to own a house. We have been able to get into more and more and with the government agenda of ensuring that the housing deficit is reduced, we are well-positioned.

“We are one of the luckiest in terms of the mortgage bankers because of the state backing. When you have a state backing, it gives you a lot of leverage around the continent to get cheap funding to ensure that a lot of people have access to their homes,” he said.

On capital strengthening, he explained that the planned bonus share issuance was part of a proactive strategy to meet anticipated regulatory requirements by the Central Bank of Nigeria (CBN).

He added that the move reflected a wider effort to position the company for sustainability and growth.

Faleye hinted that the capital raise could be in the region of N5 billion, though details were yet to be formally announced, noting that ongoing share issuance was aimed at closing the existing capital gap.

In his remarks, the Lagos State Governor, Babajide Sanwo-Olu, commended the company’s performance and urged continued collaboration to address housing challenges.

Sanwo-Olu, who was represented at the occasion by Lagos State Commissioner for Housing, Moruf Akinderu-Fatai, said: “Housing is not just a project; it is an economic driver. It will support more businesses, support development, and provide family-based self-sustainability and income.”

He assured that the State Government would continue to support institutions like LBIC to expand housing supply and improve affordability for all residents of the state.