… Eyes First-Ever Dividend After Overcoming Multi-Million Naira Losses
Daud Olatunji
Gateway Mortgage Bank Limited is setting its sights on a monumental capitalization of N10 billion as part of its strategic growth plan to solidify its presence in Nigeria’s financial landscape.
The Managing Director and CEO, Olawale Osisanya, announced this ambitious target on Wednesday, during the bank’s seventh Annual General Meeting held in Abeokuta, signalling a bold move that could reshape the mortgage industry in the country.
Despite the prevailing economic challenges, Osisanya disclosed that the bank has been meticulously preparing for this significant capital increase, which is set to unfold in phases over the coming years.
“We are only trying to make sure we do it in shares,” he said, outlining the plan to raise an initial N1 billion next year, followed by subsequent increases until the bank reaches its N10 billion target.
Osisanya emphasized that Gateway Mortgage Bank’s expansion is not limited to Ogun State, where it is headquartered, but spans across Nigeria, with a growing clientele in cities like Abuja and Benin, as well as among Nigerians in the diaspora.
“Even though we don’t have branches all over the country, we have representation all over the country,” he stated, highlighting the bank’s utilisation of technology to extend its mortgage products nationwide and internationally.
Osisanya pointed to a more than 200 percent increase in customer deposits and a rise in the bank’s total assets and liquidity ratio as clear signs of this upward trajectory.
“Our confidence in the customers that you can meet their demand has only grown,” he remarked.
However, Osisanya did not shy away from acknowledging the challenges posed by the devaluation of the Naira against the Dollar, a reality that has eroded capital in many financial institutions across the country.
“Any financial institution that wants to do well must raise capital,” he asserted, underlining the necessity of the bank’s capitalization drive.
…Ogun Plans Further Capitalization
The Ogun State Commissioner for Finance and Chief Economic Adviser to the Governor, Dapo Okubadejo has declared that the Bank has recorded a notable improvement in its financial performance and corporate governance under the current administration.
Okubadejo who represented the governor, Dapo Abiodun, highlighted the bank’s progress since 2019, when the Governor’s administration took over.
“We’ve seen significant growth not just compared to last year, but since 2019 when we took over.
“The financial performance has improved significantly, and the quality of corporate governance has also seen considerable enhancement, as confirmed by the Board Evaluation Report,” Okubadejo stated.
He emphasised that mortgage banking requires key success factors, particularly in financing.
He noted that financing for financial institutions comes from deposits, share capital, or on-lending facilities, which Gateway Mortgage Bank has successfully attracted from various development financial institutions.
“Financing is a critical aspect of mortgage banking, and it’s essential to optimize deposits and lend them efficiently to generate profits.
Even though the official announcement for the bank’s recapitalization has yet to be made, Governor Abiodun has always been proactive.
“ Once the recapitalization is formalised, it will reflect the level of support the state government will extend to the bank,” he added.
Okubadejo called on partners within the state to support the bank, highlighting the importance of a robust housing sector.
… Bank Eyes First-Ever Dividend After Overcoming Multi-Million Naira Losses
Chairman of the Board of Directors of GMB,Samuel Durojaye, says the Bank is poised to pay its first-ever dividend to shareholders next year, marking a significant milestone in the bank’s history.
Durojaye highlighted the bank’s journey from substantial financial losses to achieving a net credit position.
“Ever since the bank was established, it has not paid dividends,” Durojaye said, noting that this was primarily due to the heavy losses the bank had been grappling with.
“In the years past, the bank has been dealing with losses, including over 400 million naira in 2022. It took us over three and a half years to write off all those losses and clear the balance sheet. Now that we have a net credit position, we are free to declare dividends from next year, by God’s grace.”
Durojaye also detailed the bank’s robust mortgage financing activities over the past four years, during which over a billion naira was disbursed to civil servants and other public sector workers in Ogun State.
“ In 2023 alone, 466 individuals benefited from Gateway Mortgage Bank’s financing, including those who purchased properties in the Kobape and Prince Court estates.
“Our reach extends beyond Ogun State,” Durojaye added, emphasizing the bank’s strategic partnerships.
“Apart from our own resources, we are leveraging the Nigeria Mortgage Refinancing Company and the Federal Mortgage Bank of Nigeria. We are financing housing projects in Edo State, Abuja, and other regions, not just Ogun State. Through our partnership with the Federal Mortgage Bank, we have the capacity to support as many people as are interested in mortgage financing.”
He assured stakeholders that the bank’s services are not limited to residential mortgages but also include commercial mortgage services, catering to businesses in need of office spaces.
Durojaye also stressed the bank’s commitment to regulatory compliance and operational efficiency.
“The Central Bank of Nigeria (CBN) often gives us just two or three days’ notice before an audit, but we are always ready,” he stated.
“We operate our systems based on good corporate governance, so whether the CBN calls or visits, our system is always prepared. Transactions are captured overnight, ensuring that everything is up-to-date by the next morning.”
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