By Nse Anthony-Uko
(Sundiata Finance) – Omoluabi Mortgage Bank has expressed its determination to transform from a state-based bank to a national mortgage bank, with a plan to expand to all parts of the country in its bid to becoming one of the leading players in the sub sector.
Chief executive officer of Omoluabi Mortgage Bank, Mr. Ayo Olowookere, recently, said, “The bank is working towards transitioning from the current state-mortgage bank status to a national-mortgage bank status and to play actively across the identified corridor and beyond.”
According to him, the bank is focusing on growing housing development and mortgage business in its bid to grow its profits and expand business horizon. We are looking at spreading our operational tentacles to Lagos and Abuja. He stated that Omoluabi Mortgage Bank would position itself as a major player in the mortgage sub sector especially in the South-West together as well as Kwara and Edo states.
On the strategies to achieve its projections, he noted that the firm was aiming at re-aligning its products and service delivery. He said the bank was refocusing mortgage business, restructuring its risk assets and liability products as well as engaging partners along the mortgage industry value chain.
Capital market analysts stated that going national has several advantages for the bank. According to them, having a national spread gives the bank access to cheaper finance from multi lateral organisations. These bodies tend to give single digit loans to microfinance institutions for onward lending to members of the public.
Analysts at Nairametrics said that, “The expansion in operations will also enable the bank source a large volume of deposits. The larger the volume of deposits, the cheaper the cost of funds and subsequently the lower the interest rate it will charge on loans.
“Shareholders of the bank will also make more money in terms of dividends as the increase in the scale of operations will lead to more revenue and profit for the firm.
The move to increase capital may also be to prempt a change by regulators on capitalisation requirements for mortgage banks.” Omoluabi Mortgage bank was licenced for operations in 1999 and became a public limited liability company in January 2014.
Omoluabi Mortgage Bank Sets For Expansion
By Nse Anthony-Uko