The board of Abbey Building Society, a primary mortgage institution licensed by the Central Bank of Nigeria (CBN), on Tuesday presented its audited financials for the year ended December 31, 2018, indicating that shareholders will receive no dividend for their investments, after posting a bigger loss before and after tax, following N568.1m provisions for loan loss within the period.
In the 2017 financial year, under the International Accounting Standards (IAS) 39, the bank reported impartment charges totaling N167.938m, most of which was the N109.577m impairment charge on other assets.
Gross earnings for the period stood at N1.383bn, driven by the N1.15bn interest and similar income on customer loans and advances, which dropped from N1.255bn. The bulk of which was the N1.193bn derived from its core area- mortgage banking; followed by N117.433m being investment banking; while N72.33m was derived from retail banking. Earnings dropped from the N1.408bn reported in 2017, with N1.185bn contributed by its mortgage banking business; ahead of the N191.241m from investment banking and N21.009m by retail banking.
Interest and similar expenses dropped marginally from N490.754m to N485.456m; just as fee and commission income stood at N139.576m from N121.212m, driven principally by the N139.544m mortgage fees. In 2018, legal fees stood at N32m.
Other operating income increased to N67.072m, as against the previous N31.157m, boosted by the N43.179m other non-contract fee income, an increase from N6.151m; while N8.148m was derived from account maintenance, which dropped from N9.208m in 2017. Specifically, ‘other income’ rose to N54.145m from N21.009m; followed by the N10.15m rental income, which was slightly better than the N9.948m of 2017; and N2.777m profit from the sale of property and equipment, up from N0.2m.
Personnel expenses dropped slightly from N353.506m to N334.294m, boosted by the N313.05m wages, salaries and other staff costs, up from N331.213m.
Other operating expenses stood at N579.958m, up from N506.122m, the largest chunk being N80.741m directors remuneration, which dropped slightly from N81.141m, followed by N75.805m cost of subscriptions, publications, stationeries, and communications, rising from N62.113m, among others.
Loss before tax stood at N636.48m, up by N458.573m or 257.76%, compared to the N177.907m reported in the corresponding period of 2017; income tax expense dropped to N29.039m from N34.468m, resulting in net profit of N665.519m, up by N453.144m or 213.37% from N212.375m in 2017. This translated to a loss per share of 15.85 kobo, up from 5.06 kobo.
Total assets for the period stood at N11.963bn, down from N12.24bn, with customer loans and advances dropping marginally from N7.458bn in 2017 to N7.288bn; followed by the N1.06bn property and equipment, compared to N1.084bn in the prior year.
Total liabilities rise from N6.014bn in 2017 to N6.506bn, being mainly the N5.898bn customer deposits, up marginally from N5.356bn.
Shareholders’ funds however dropped from N6.225bn in 2017 to N5.457bn.