By Providence Emmanuel
JUBILEE Life Mortgage Bank JLMB, has posted N245 million profit in its financial year ended December 2016, just as the primary mortgage institution has unveiled its ultramodern office in Lagos.
This became possible after the acquisition of four microfinance banks: Karis Microfinance Bank, Lekki Microfinance Bank, New Life Microfinance Bank and Estate Microfinance Bank all in 2014 by the PMI, thereby pushing its shareholders’ funds to over N5 billion.
Speaking at a media briefing heralding the commissioning of the ultramodern Head Office in Lagos last week, the managing director/CEO of the bank, Mr. Remi Olatunbode, said that it is in the quest to deliver homes through affordable mortgage system to Nigerians that the bank acquired four of the microfinance banks, thereby growing its branch network from six to 10.
To this end accordingly, the bank has remained strong despite harsh operating environment even as it posted 16.3 percent of the N1.5 billion industry profit in 2015. Olatunbode said that the mortgage bank is taking a giant leap in the mortgage bank industry, lamenting that the lower and middle class as well as the poor in Nigeria do not have access to mortgage loans due to high interest rate fueled by inflation.
“In other climes, interest rate is single-digit, as low as four or five percent. That is because you see fund of 50 years, municipal money and many other types of funds that people can access. But here, we don’t have it. Due to the nature of our economy, investors take a short term view, which is why it is hard to see long-term funds”, he said. Also, he explained that there are 36 mortgage banks in the country, saying: “We have a national license to operate around the country. Many mortgage banks in the country either have a regional or state license. There are 10 mortgage banks with a national license and we are one of them”, Olatunbode noted.