ASO Savings & Loans to raise N10bn next year

ASO Savings & Loans Plc, a mortgage finance bank, has disclosed that it will raise N5bn in the next few months and N10bn by the end of June next year in line with the Central Bank of Nigerias guidelines for Primary Mortgage Institutions to have a minimum of capital of N5bn.The Managing Director, ASO Savings, Mr. Hassan Musa Usman, added, Our plan is to raise the capital through the combination of right and social private placements to select social investors.According to a statement by the mortgage firm, the company declared a profit before tax of N1.9bn in its 2010/11 financial reports. The Chairman, Board of Directors, Mr. Abdul Mukhtar, said, The bank achieved growth virtually in all indicators but most reassuringly in an emphatic return to profitability after a substantial loss in the previous year.According to the results, the banks profit before taxation stood at N1.9bn while profit after tax stood at N1.2bn. Gross earnings at just over N11bn, translates to 9.9 per cent improvement year-on-year and represents modest but marked growth after relatively flat performances in the previous year.Mukhtar said, Return on shareholders funds at 40 per cent is substantial and a rough proxy measure of the banks significant viability compared with its estimated total cost of funds in the early to mid teens.Musa-Usman said, As an organisation, we have made considerable progress in 2010/11, delivering good growth in our core business, returning to profitability and reducing the risk in the business. The integration of a fully- fledged Enterprise Risk Management Division has enabled the business make robust its lending strategy and ensure we have the right framework to support our business growth
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