Resort Savings Posts N208m Profit,
Turnover hits N485m
Mr Joe Idudu, chairman of Resort Savings and Loans Plc has announced a steep growth in the company’s turnover which was put at over N485 million in its last operating year as against N39million declared in the preceding year.
Rolling out the figures at the company’s annual general meeting in Lagos a fortnight ago, Idudu said, Resort Savings and Loans was also able to gross a N208 million profit before tax and extra ordinary item as against N9 million made in the year before.
And in conformity with the mood of the moment in the finance sector, the management of the company has set aside the sum of N50 million as provision on its risk assets while an extraordinary item arising from restructuring deficit of N35 million was written off. The company, according to Idudu, was able to grow its net asset to N5.6 billion as against N153 million in the preceding year.
The chairman told the share holders at the meeting that the impressive performance of the company was accounted for by the higher and sustainable earnings derived from its core operations as seen in the growth of interest income to N378 million as against N7 million in 2007.
He said, “The strategic units are being strengthened to contribute to the profitability of the bank and this is expected to impact positively in the foreseeable future of the bank.”
The mortgage firm which began operation in 2007, with a capital of N2007, floated a private placement of shares to increase the capital of the bank. At the conclusion of the exercise, the bank generated a capital of N6.3 billion. Only recently, Mr. Abimbola Olayinka, managing director of the company, said the primary mortgage institution is targeting attainment of shareholders fund of N20 billion by the year 2012.
He made this disclosure in Abuja at the opening ceremony of the branch of the mortgage institution in Abuja said before the end of next month the resort savings share will be listed in the stock markets for prospective shareholders.
With a product portfolio that boasts of most innovative and customer centric idea, Olayinka and resort savings has grown to attain an enviable position amongst the mortgage institutions operating in Nigeria.
Olayinka, while explaining that at its incorporation in 1992, the company’s authorized and fully share capital was N5,000,000.00, noted that “presently however, this has grown to N10 billion and N6.5 billion respectively.”
“Not minding the global economic downturn the company had achieved a profit before tax of over N20 million as at December 2008. The achievement of the company primarily hinged on its ability to develop products and services that consistently meet the yearning of its target audience” Olayinka said.
He stated that the company has effectively operated in the area of deposit management, over the counter services, property acquisition with some other products which include resort daily and monthly contribution, aimed at taking banking services to your door steps through collection of deposit and transaction of other banking business.
The resort savings boss, while disclosing the plan of the organisation to partner with various governments to provide affordable housing for the civil servants, said the products available in the stock of the finance home include home ownership account, and resort acquisition account where by individuals could acquire land and build houses without sweat.
“Other products he said include resort corporate mortgage administration scheme resort flexi-draw and kiddies savings and resort lease. With these ingenious products and services, the organisation provides individuals and firms with professional assistance and resourceful quality banking services.
According to him one of the products is resort investment and mortgage plan (RIMPLAN) which is put together to encourage savings towards achieving home ownership as well as facilitating timely and favourably mortgage delivery to the subscribers.
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