FIRST Generation Homes (Savings and Loans) Limited (FG Homes) extended housing loans and mortgage credit worth N2.7 billion for the financial year ended March 31, 2010 to loan seekers. This represents a growth of 31 per cent over the N2.1 billion it granted in the prior year.Of the total housing credit, National Housing Fund (NHF) loans accounted for 69 per cent, which shows that the firm is a major contributor to the nations housing development as well as a strong Primary Mortgage Institution (PMI).The Managing Director of the company, Mr. Felix Daniel, said at the firms yearly general meeting in Abuja recently that despite the challenges facing the industry in the past year, FG Homes ended the financial year with impressive performance.According to the managing director, the banks gross earnings increased by 18 per cent to N500 million, as against N425 million in the previous year, representing appreciation by 24 per cent.Net interest income of the firm, he stated, was N348 million and represented 69 per cent of the gross earnings. demonstrating efficiency as well as sustainability in the area of the firms core business.With total operating costs (excluding provision for loan losses) at N164 million compared to N88 million in the previous year, the bank recorded profit before tax and provisions for losses of N210 million, which is 23 per cent rise from the N178.19 million made in the prior year ended March 31, 2009.Daniel further stated that the rise in the loan loss expenses charged during the period because of high provisioning on increased incidence of defaults impacted on profitability, resulting in a profit before tax of N50.55 million, representing an increase of 6.76 per cent compared to N47.35 million made in 2009.The Chairman of the company, Chief Fabian Nwaora, noted in his statement at the AGM that it was glaring and gratifying that notwithstanding the enormous challenges the Nigerian mortgage industry faced in the past year, FG Homes came out with impressive figures.Speaking on the future of the firm, Nwaora pointed out that the outlook of the bank is impressive, stressing that, we will continue to emphasize liability generation through conscious growth of our NHF customer base and the review of our various products features to align with market demands.The chairman further stated that in the current financial year, FG Homes would also pursue growth through increase in its risk assets portfolio and better prizing of its mortgage credits.The company intends to broaden its market penetration in the current year by opening more branches across the country. We intend to open offices in Nyanya, Kubwa, Karu, Dei Dei and Maraba, all within the outskirts of Abuja, in addition to satellite branches billed to take off in Lagos and Yenagoa to leverage on our mortgage products already tailored to those locations, he added.
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