The Lagos Building Investment Company (LBIC) has announced a 43 percent rise in profit before tax to N1.65 billion for the 2025 financial year, compared to N1.16 billion in the previous year. The mortgage lender also revealed plans to raise capital and expand its operations.
Strong Financial Performance
During the company's Annual General Meeting (AGM) held in Lagos, Chairman Hakeem Ogunniran reported significant growth in the mortgage loan portfolio, which surged from N794 million in 2024 to N2.07 billion in 2025, with no impairments recorded. This highlights improved asset quality despite a challenging economic environment. Gross earnings increased by 41 percent, rising from N2.54 billion to N3.56 billion.
Ogunniran attributed the strong results to the company's resilient strategy and focus on core mortgage operations. He stated: "All the indices were very good. Shareholders' fund, mortgage creation, gross earnings, PBT, and for the second time, we are paying a dividend this year. We are also issuing bonus shares to further compensate our shareholders, reflecting the strength of the company's performance."
Strategic Partnerships and Outlook
Despite macroeconomic pressures, LBIC's strategic direction has continued to yield positive outcomes. Partnerships with institutions within Lagos State to finance housing project offtakers have strengthened cash earnings and positioned the firm for sustained growth. Ogunniran expressed optimism for the 2026 financial year, citing a strong first-quarter performance.
Managing Director and CEO Olusola Faleye noted that LBIC is strengthening its financial position to expand access to affordable housing. Bridging the housing gap remains a critical priority, and the company aligns its strategies with government efforts to reduce the deficit and improve home ownership across the state and beyond.
Dividend and Bonus Shares
Faleye highlighted that LBIC paid its first-ever dividend last year, signaling improved performance and a commitment to rewarding shareholders. He said: "For the first time in LBIC's history, we paid a dividend. Our commitment is to continue that trajectory. We will be paying dividends and issuing a bonus for every 15 units."
He emphasized that many Africans lack awareness of flexible home ownership models, and mortgage institutions have a role in deepening financial inclusion in the housing sector. LBIC's state backing provides a competitive advantage in accessing low-cost funding for mortgage financing.
Capital Strengthening Plans
Faleye explained that the planned bonus share issuance is part of a proactive strategy to meet anticipated regulatory requirements from the Central Bank of Nigeria (CBN). The capital raise could be around N5 billion, though details are yet to be formally announced. The ongoing share issuance aims to close the existing capital gap.
Government Support
Lagos State Governor Babajide Sanwo-Olu, represented by Housing Commissioner Moruf Akinderu-Fatai, commended LBIC's performance and urged continued collaboration to address housing challenges. He stated: "Housing is not just a project; it is an economic driver. It will support more businesses, development, and provide family-based self-sustainability and income." The state government pledged to support institutions like LBIC to expand housing supply and improve affordability for all residents.
