With Zero Impairments, Omoluabi Savings Posts NGN48,9 Million Net Profit

Union Homes

Omoluabi Savings and Loans PLC is finally get its ‘mojo’ back. The bank said its net profit for period ended 30 September, 2016 was NGN48,9 million.

Although its net profit fell by 43% on a year on year basis, its gross interest income for the nine month period rose to NGN195 million from NGN165 million recorded in 2015.

Fees and commission for the period has rose to NGN11,7 million. Last year, the bank booked a total of NGN4,9 million for the same item.

The rising cost of doing business almost wiped out gains from its increased fees and commission revenue as the its fees and commision expenses rose to NGN5,4 million. Last year, the company only expended NGN307k on the same item.

Omoluabi Savings must have doubled its manpower as its personnel expenses almost doubled. For the nine months period, the company reported that its personnel expenses rose to NGN75,8 million versus NGN37,9 million paid out last year.

As at the end of the first nine months of the year, the bank’s asset was NGN2,9 billion versus its total liabilities of NGN448 million. The bank has a healthy balance sheet.

Omoluabi Savings provides savings and mortgage services to customers in Osun State. The bank booked massive impairments in the first quarter of the year when its customers, mainly civil servants in Osun state defaulted on their mortgage payments due to unpaid salary backlogs owed to them by the state governments.

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