PMBs record N383.67b total assets in 2016

Primary Mortgage Banks (PMBs) operating in the country have declared significant increase in their total assets, declaring a total sum of N383.67 billion at end-December 2016 from N382.36 billion at end-June 2016.

According to the latest Financial Stability Report (FSR) of the Central Bank of Nigeria (CBN), the PMBs total assets figure showed an increase of 0.34 per cent.

The report also indicated that the number of licensed primary mortgage banks (PMBs) remained 34 at end-December 2016, comprising 10 National PMBs and 24 State PMBs.

But balances with banks and paid up capital increased by 78.86 per cent and 0.05 per cent to N24.79 billion and N103.35 billion respectively, in the year under review from N13.86 billion and N103.29 billion at end-June 2016.

However, loans and advances, deposit liabilities and other liabilities decreased by 6.85 per cent, 5.25 per cent and 5.89 per cent to N154.46 billion, N115.77 billion and N68.06 billion, respectively, at end-December 2016 from N165.83 billion, N122.18 billion and N72.32 billion at end-June 2016.

The PMBs loans and advances stood at N154.46 165.83 (6.85), with balances with Banks N24.79 13.86 78.86, while deposit liabilities stood at N115.77 122.18 (5.25) with other liabilities N68.06 72.32 (5.89) but their paid up capital was seen at N103.35 103.29 0.05, at the end of the year under review.

According to the report, the implementation of the National Housing Finance Programme (NHFP) achieved new milestones in the review period.

“The Nigeria Mortgage Refinance Company (NMRC) had refinanced mortgages amounting to N8 billion representing an increase of 200.75 per cent compared with N2.66 billion at end-June 2016.

“Having exhausted the first N8.0 billion bonds raised from the market, the company is in the process of raising additional N2.4 billion to refinance eligible mortgages of its member Participating Lending Institutions (PLIs)”, it stated.

In line with its condition for credit recourse, the NMRC exchanged refinanced non performing mortgages of N172.46 million with 3 Primary Lending Institutions for performing mortgages of N208.96 million within the review period.

The NMRC successfully hosted the African Union Conference for Housing in Abuja in September 2016. The Conference created awareness on opportunities in the housing finance sector and proffered solutions to common challenges.

Meanwhile, the Expression of Interest (EoI), and completion of the evaluation process, showed that two firms were selected to work with eight Microfinance Banks (MfBs) that had been prequalified to participate in the pilot Housing Microfinance (HMF) Scheme with a budget of USD15 million aimed at catering for the housing needs of low income earners.