FMBN Records N424m Half-year Operating Surplus

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By Dele Ogbodo

The acting Managing Director of Federal Mortgage Bank of Nigeria (FMBN), Mr. Richard Esin, has said the bank recorded N424 million as operating surplus in its half year business performance indicators.
The bank in a statement made available to journalists at the weekend, in Abuja, said the profit was realised from its total income of N5.8billion.

The bank’s half-year financial performance from the management account by the Group Head, Finance and Control Group, Mrs. Oby Nwokedi, indicated an operating surplus of N424 million from a total income of N5.8 billion.

According to a statement by the bank, the half year business performance review, was aimed at taking stock of its performance during the half year January-June 2016, as well as to strategise on how to improve on its operations.

Esin said the Business Performance Review (BPR), which was the first of its kind in the history of the bank, became imperative in order to successful chart a new course for the bank.

He stressed that the bank must strive to focus on creating a performance driven culture at all levels of its operations which can be achieved through the bank’s four pillars of corporate governance compliance, banks’ profitability operational effectiveness and debt recovery.
On debt profile of the bank, Esin admitted that the bank is in process of compiling debtors list, adding that the Economic and Financial Crimes Commission (EFCC), has expressed willingness to assist the bank recover the debts.

He said: “The bank is collaborating with other organizations with like minds to promote self re-invention and stimulate competition for the overall growth of the housing sector.”

At the end of the bank’s review of its performance, Esin, said the bank has begun a paradigm shift towards sustainable profitability and the ascendency towards delivery of quality services to the National Housing Fund (NHF) contributors and mortgagors.

He added: “The need to identify critical factors affecting operational performance in the bank such as sound corporate governance principles in its continuous engagement with government and Stakeholders was identified as key.
“The bank must also adequately strategised in all facets of its operations in order to redefine its role in the housing/mortgage finance market with a view to being operationally efficient and profitable like its international peer institutions.”
The Deputy Director, Monitoring and Evaluation, Ministry of Power, Works and Housing, Mr. Emmanuel Otu, in a keynote address encouraged the bank to organise such sessions on regular basis so as to entrench the culture of accountability and profitability in the system.

He also urged the bank to periodically review its portfolio, with a view to optimising its assets to drive mortgage lending and profitability.