Tag Archives: Safetrust Mortgage Bank Limited

Safetrust Mortgage Bank gross earnings hit N2b

 

Safetrust Mortgage Bank Limited has posted over N2 billion in gross earnings for 2017, representing 35 per cent growth for the same period in 2016.

According to results published in the bank’s annual report and financial statements, profit after tax was N307 million, an increase of 683 per cent above the 2016 PAT. Total assets stood at N13.5 billion compared to N8.1 billion in the previous year, while shareholders’ funds grew by 100 per cent from N2.77 billion to N5.54 billion due to increase in issued shares.

Presenting the results at the company’s just concluded 2018 Annual General Meeting (AGM) in Lagos, its Chairman, Board of Directors, Ayodele Arogbo, attributed the bank’s strong financial performance last year to improved service quality, robust corporate governance and excellent work ethics.

He said: “During the year under review, the bank issued 2.5 billion fully paid ordinary shares of N1 each to Colebrook Investment Limited. The new injection of funds enabled the Bank to meet the minimum capital of N5 billion required for a National license.

“At Safetrust Mortgage Bank, we will continue to focus on building key capabilities by actively supporting policies designed to build a sustainable Nigerian economy over the next decade and providing a wide-range of customer-focused services especially in delivering affordable housing for Nigerians.”

The bank’s Managing Director, Mr Akintayo Oloko thanked the customers, whose relationship with the Bank has enriched both parties with years of fruitful returns. He noted that Safetrust was going into 2018 with optimism based on the successes recorded in the macro environment in the preceding year.

According to Oloko: “The repositioning of business structures and significant capital investment through private equity, have augmented the Bank’s capacity to deliver differentiated mortgage banking products and other services to customers while enhancing cost-efficiency and reducing risks.”

Safetrust Refunds Investment in Safetowers

 

Safetrust Mortgage Bank Limited said it has given financial support to Macbosh Properties Limited to fully refund the investment made by Mr. Kunle Ogunmefun on its Safetowers project.

This was disclosed in a statement by the Head, Marketing and Corporate Communications of Safetrust Mortgage Bank Limited, Mr. Maurice Ibie.

Ibie disclosed that Macbosh Properties Limited had entered into a commercial transaction with Ogunmefun on Safetowers located along the Lekki – Epe Expressway.

He said the statement became necessary in the light of conflicting reports making the rounds in some sections of the media.

According to Ibie, “Safetowers consists of three high-rise blocks of flats, and pent house duplexes. Ogunmefun indicated interest in the project and subscribed to a block which has 16 units of three bedroom apartments and two units of five bedroom Penthouse duplexes.

“The estimated construction and delivery time was for a period of 24 months at a total price of N710,000,000”

He reiterated that Ogunmefun had previously bought some units in a previous development “Safecourt Apartments” financed by Safetrust Mortgage Bank, which was more than twice the size of Safetowers in monetary terms. The project was developed successfully and delivered accordingly.

According to the statement, it was mutually agreed with Ogunmefun under the terms of Memorandum of Understanding (MoU) executed between Macbosh Properties and Ogunmefun that on receipt of the entire sum Macbosh Properties would complete the property within a time frame of 24 months.

“However contrary to the terms of the MoU, the total sum was not paid up-front, rather the sum of N550,000,000 was paid in tranches through a company called Currant Limited,” the statement added.

The bank alleged that “despite the breach of agreement by Ogunmefun,” Macbosh Properties in good faith commenced the construction of the property in line with its obligation in the MoU but that the economic crisis that bedeviled Nigeria in 2015 led to hike in construction.

It added that “if Mr. Ogunmefun had paid at the agreed time, the unnecessary delay would not lead to hike in construction cost.”

The bank stated that while it was not normal practice to make refund without selling any property or getting a new buyer, Macbosh Properties had proposed that a refund of payment till date be done in two instalments “and it showed faith to make an initial payment of N275,000,000 despite not having resold the units.”