Recapitalisation: Aso Savings targets N10bn

ASO Savings and Loans Plc on Friday said that it would raise its capital to N10bn within the next six months.The move, according to the Managing Director of the bank, Mr. Hassan Usman, is in line with the directive given by the Central Bank of Nigeria for all Primary Mortgage Institutions to recapitalise.The apex bank had while issuing a new guideline for the sector ordered all PMIs to raise their minimum capital to N5bn.But Usman while speaking at the banks Annual General Meeting in Abuja noted that it had concluded plans to go beyond the N5bn minimum requirement.He explained that the capital would be raised through the combination of rights issue and special private placement.He said, "We are seeking to go beyond that requirement, our plan is to raise about N5bn over the course of the next four five months or so, we are hoping to get our capital base to about N10bn by the end of June next year, this is about two times what the CBN is asking for.He added, "We have started our plans, we just got an approval from the investors now and we believe that by March next year, we should be through with that process".Speaking on the banks financial performance, he said the PMI recorded growth in virtually all indicators, adding that the bank had returned to profitability after a substantial loss in the previous year.The bank recorded a profit after taxation of N1.2bn when compared to the loss recorded in 2010."We are doing well, we are happy because 2009 was not very good, we had issues that year, we made a loss, but we turned around this year, we made profit of about N1.2bn, its really a reflection of an aggressive debt recovery drive as well as keeping our costs in control,"he added.On the nations mortgage industry, Usman pointed out that with a housing deficit of 16 million, the prospect of the industry was still bright.He said, "We are working based on a retail market, we want to focus more on the middle class and the low end of the market so that people can have affordable houses."
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