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Resort Savings plans N7bn investment in real estate

… Seeks foreign loans for housing projects

Resort Savings and Loans Plc has announced its plans to invest about N7 billion in the real estate segment of the Nigerian economy in the year 2010.

The bank also disclosed that it is sourcing funds from foreign financial institutions to finance real estate projects in key choice locations across the country.

Speaking during its listing by introduction of 13.18 billion ordinary shares of 50 kobo each at N0.95 per share on the Nigerian Stock Exchange (NSE), Tuesday, the Managing Director/Chief Executive Officer of the company, Mr. Abimbola Olayinka disclosed that the investment is an indication of its resolve to fund profitable real estate projects across the country.

He said, “The Bank is looking at a Profit before tax of N3.0 billion in the year 2010, investment in real estate of N7.0 billion, investment in fixed assets of N1.0 billion, deposit liabilities of at least N3.2 billion, total assets of N29.0 billion and shareholders’ funds in excess of N8.0 billion.

“We are going to fund profitable projects in the areas of real estate operations in states like Lagos, Abuja, Kaduna, Rivers and Adamawa States, collaborating with other real estate developers in building affordable houses which will be funded using National Housing Funds’ loans.

“The Bank is sourcing foreign loan from abroad for the purpose of executing construction of estate in prime areas of the country.”
He assured shareholders of improved returns on their investment, promising to pay dividends by the end of next year.

Olayinka noted that the company has recorded significant improvements in its half year financial performance for 2009, posting a profit before tax of N234 million.

He said, “The assets of the bank grew from N830 million to N8.2billion between January 2008 and June 2009 as per interim audited financial statements.  All these assets are of good quality as due diligence  and viability/profitability analysis were undertaken before the acquisition of such assets.

This becomes more pronounced in the quality of our risk assets. The Bank is maintaining a good level of liquidity such that all its financial obligations are met as and when due.

“The bank’s profit before tax as of the 15 months period ended December 31, 2008 was N207.0 million whereas the profit for the six months ended 30th June 2009 was N234 million.  This is the profit from normal banking operations as profit from projects and other ventures are not included.  The Management position was that such profit will not be recognised until the accounts are audited. The future of the Bank is surely bright.

“The deposit base of the bank grew from N 474 million naira as at end of December 2008 to N721 million as at end of June 2009 and this is expected to grow to N3.2 billion by the end of the financial year of 2010.

“The bank was unable to pay any dividend for the year ended December 31, 2008 in view of the regulatory authorities insistence that all previous year losses must be written off but it is being assured that this will be done for the current financial year ending December 31, 2009.”


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