Mr. Hassan Usman, MD, Aso Savings

By James Emejo in Abuja

The Managing Director/Chief Executive Officer, Aso Savings and Loans Plc, Mr. Hassan Usman, has disclosed plans to raise N5 billion from shareholders to enable it match competition and expand operations.

Speaking in Abuja at the weekend during the 14th Annual General Meeting (AGM) of the bank, he said the recapitalisation process, which would begin in September, is expected to conclude in October.

He said: "We have gotten approval from the Nigeria Stock Exchange (NSE) and we are doing a rights issue; we are going back to our shareholders to try and raise some funding- we are looking at N5 billion from our shareholders."

Meanwhile, Chairman of the company, Mr. Olatunde Ayeni, said it made a profit before tax (PBT) of N300 million for the year ended March 31, 2012, while the balance sheet also grew by 32 per cent to N27 billion in 2012 from N20 billion in the previous year. Its profit after tax (PAT) however, stood at N129.2 million.

Ayeni said the company's deposit liabilities grew by 5 per cent to N68 billion in the period under review compared to N65 billion in 2011.

He added that mortgage assets formed about 79 per cent of its total loans and advances, re-affirming its position as a leading mortgage institution in the country.

He said: "Our management team has provided real leadership to the company and has driven financial and operational success embedded on a strong culture of team work and integrity. It is this teamwork that has created the results that we have experienced and will ensure our continued success in future years."

Usman, however, admitted that the company had operated in a difficult financial and operational environment in the 2011/2012 period.

"We nevertheless remain optimistic about the future. We are operating in a potentially high-growth sector and strongly believe that the sector's potentials will be unleashed within the next 18 months," he added.

Continuing, he said: "From next year, we know that the market is going to be a lot more competitive; if we do not have some element of skill, if you don't have a certain size, you cannot compete effectively. Even before we get to that, we want to make sure we've increased ourselves."