Platinum Mortgage Bank Plc, a primary Mortgage Institution has announced its decision to increase its share capital to N10 billion in the coming year.
This was disclosed by the Managing Director of the Mortgage Bank, Emmanuel Mbaka during a visit to the Federal Mortgage Bank of Nigeria (FMBN) office in Abuja.
The reason for the increase in share capital is based on the recent recapitalisation of the mortgage institution to N7 billion, which has generated a renewed confidence in the bank according to the Managing Director.
Reacting to the announcement, Managing Director of the FMBN, Ahmed Dangiwa, said Platinum had been a critical stakeholder to the National Housing Fund and has created mortgage loans worth over N10 billion. He said the FMBN would partner more with the bank to create more housing funds for aspiring homeowners.
Dangiwa described Platinum Mortgage Bank as one of the FMBN’s biggest partners and a very steady and reliable primary mortgage bank in the country that has continued to deliver high standards. Elated by the bank’s move to recapitalise, Dangiwa said that the Federal Mortgage Bank is willing to enter into an agreement to partner with Platinum to enable more Nigerians access more homes.
“Platinum has been a very critical stakeholder to National Housing Fund and has created mortgage loans worth over N10bn currently and it is still running, and they are all performing loans. Through Platinum Mortgage Bank, we are still committed to advance more facilities for homeownership. We are willing to partner them to create an enabling environment for further synergy in the service delivery of home creation to Nigerians.”
“We are happy to hear that they are being recapitalised to N7bn and are about to reach up to N10bn capitalisation. With this I think the bank should be able to come back again and do a lot of business with us. We wish to congratulate them on that and hope that they can even acquire smaller PMBs in order to have broader base. That is the only way to strengthen the market.” Dangiwa said.
A Nairametrics report identified the increasing need for the Central Bank of Nigeria (CBN) and commercial banks to develop consumer credit products that will encourage low-income earners to engage more in loan taking like mortgage financing. The continued failure of Primary Mortgage banks worried Dangiwa and he urged Platinum to absorb those banks as a means of strengthening its base to avoid failure.