Chairman of AG Homes, Prof. Paul Emeka
By Goddy Egene
AG Homes Savings and Homes Plc, a primary mortgage institution, has reported an impressive financial performance for the year ended March 31, 2012 despite the challenging operating environment.
Addressing shareholders at 7th Annual General Meeting in Lagos last week, Chairman of AG Homes, Prof. Paul Emeka, said gross income rose by 43 per cent from N397 million in 2011 to N567million in 2012.
He added that net operating income also grew from N280 million to N444 million.
According to him, profit before tax stood at N122 million, representing a jump of 501 per cent from the N20.3 million posted in 2011.
“Profit after tax increased by 536 per cent from N18.98 million in 2011 to N120.78 million in 2012. These growth indicators point to the fact that we are moving in the right direction,” Emeka said.
Total assets of the company, the chairman disclosed, stood at N3.56 billion as at the end of March this year, up from N2.32 billion, the previous year.
However, in spite of the good operating results, he said the shareholders’ would not receive dividend due to effort to recapitalise the bank to the meet the new minimum shareholders’ funds of N5 billion.
Explaining the performance, Managing Director/Chief Executive Officer of AG Homes, Mr. Anthony Ewelike, the result was bolstered by the company’s increased participation in the National Housing Fund(NHF) window.
He said that in the course of the year, AG Homes received N898 million from the Federal Mortgage Bank of Nigeria (FMBN) for on-lending to various customers under the NHF loan scheme, while another approval was also received from FMBN to the tune of N626 million for another set of NHF applications.
He noted that in the coming year, the focus of the company would be the realisation of its investment properties through strategic alliance with reputable estate developers.
“Over the past years, we have been laying the foundation for an organisation that will meet the aspirations of our various. I want to thank our shareholders specifically for their faith in us and confidence in the future greatness of our bank. I assure you that the dividends of your faith in us are around the corner,” Ewelike said.