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We recorded 183% profit growth in 10 years – CMBank


The Chairman of Cooperative Mortgage Bank Limited, Walter Ogujiofor, has said that the management of the bank successfully prevented its death twice when regulatory recapitalisation was mandated in Nigeria, adding that the bank recovered from a loss of N112.5m in 2009 to N393m profit in 2018, representing 183 per cent growth.

Ogujiofor spoke at a ceremony held in Ibadan to celebrate 25 year anniversary of the bank. At the ceremony, some staff of the bank were recognised with long service awards while customers were rewarded with various prizes, with one of them winning a house.

He said, “As at 2018 accounting year, our balance sheet size stood at N7.414bn as against a balance sheet size of N0.647m recorded in 2009 accounting year. This represents more than 1000 per cent growth.

“The bank also recorded N393m profit in 2018 accounting year as against loss of N112.5m sustained in 2009, indicating a growth of 183 per cent.  On the other hand, the bank was able to move from negative capital adequacy ratio of 168 per cent in 2009 to a positive capital adequacy ratio of 155 per cent in 2018.

“The bank started well but by 2009, it had not only accumulated losses but also had to be recapitalised to a new regulatory ceiling, necessitating new investors and more astute management. The new management, being the same till date, has been successful in preventing the death of the bank at least twice when regulatory recapitalisation was mandated.”

The chairman noted that despite the challenging macroeconomic and operating conditions, CMBank had been able to forge ahead by expanding its business scope through the inauguration of innovative products to capture the unexplored areas of opportunities.

Speaking at the event, Managing Director/Chief Executive Officer of the bank, Kabir Tukur, called on the Federal Government to initiate policies that would strengthen mortgage banking system in the country, noting that such effort would help to bridge the housing need gap in Nigeria.

He said the intervention of Central Bank of Nigeria was not all that was needed in solving housing problem in the country, pointing out that while mortgage banking represented 95 per cent of banking services in the advanced countries of the world, it represented less than two per cent in Nigeria.

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