The Lagos Building Investment Company Plc has announced a 43 per cent increase in its profit before tax to N1.65bn for the 2025 financial year, up from N1.16bn recorded in the previous year. The mortgage lender has also intensified plans to raise capital and deepen expansion.

During its Annual General Meeting held in Lagos on Tuesday, the lender also reported a sharp rise in its mortgage loan portfolio, which grew from N794m in 2024 to N2.07bn in 2025, with no impairments recorded, underscoring improved asset quality amid a challenging operating environment.

Other financial indicators showed strong performance, with gross earnings rising by 41 per cent from N2.54bn to N3.56bn.

Customer deposits increased by 17 per cent to N13.31bn from N11.34bn, while total assets stood at N20.61bn and shareholders’ funds closed at N5.43bn.

Chairman of the Board, Hakeem Ogunniran, said the results reflected the resilience of the company’s strategy and its focus on core mortgage operations.

He said, “I mean, clearly you can see that 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, which is an indication of the strength of the performance of the company.”

Ogunniran added that despite macroeconomic pressures, the company’s strategic direction had continued to deliver results. He said, “It’s a tough environment, but God has helped us so that the strategies that we have created are delivering the results that we so desire in the marketplace.”

Explaining the drivers of growth, the chairman said the company had focused on its core mandate of mortgage creation and improved operational efficiency. He said, “Okay, I mean, so the first thing that we focus on is core mandates, which is mortgage creation. You’ll see that over the past two years, the portfolio of income coming from a mortgage business has increased by over 100 per cent.”

He added that partnerships with institutions within Lagos State to finance housing project offtakers had strengthened cash earnings and positioned the firm for sustained growth.

On the outlook, Ogunniran expressed optimism about the 2026 financial year, citing strong first-quarter performance. He said, “2026 is going to be a much better year for us by the grace of God. We’ll surpass our targets. We’ve already seen that from the first quarter results.”

Also speaking, the Managing Director and Chief Executive Officer, Olusola Faleye, said the company would sustain its dividend policy while using bonus share issuance as part of its capital strategy.

He said, “For the first time, last year, we paid a dividend in the history of LBIC. And we committed to continue in that trajectory, to pay a dividend and issue a bonus of two units for every 15 units.”

Faleye noted that the bank was positioning itself ahead of potential regulatory capital requirements by strengthening its capital base through retained earnings. He said, “So one of our strategies, the reason why we are issuing bonuses, is to ensure that even before the pronouncement comes out from CBN, we will have upped our capital base to the minimum that is required.”

He added that the company remained close to meeting a proposed N5bn capital threshold and could access the market if necessary.

On sector performance, Faleye said the firm was leveraging government backing to expand access to mortgage financing and reduce the housing deficit. He said, “When you have state backing, it gives you a lot of leverage around the continent to get cheap funding to ensure that a lot of people have access to mortgage loans.”

In his remarks, the Lagos State Commissioner for Housing, Moruf Akinderu-Fatai, who represented Governor Babajide Sanwo-Olu, commended the company’s performance and urged continued collaboration to address housing challenges.

He said, “Housing is not just a project; it is an economic driver. It will support more businesses, support development, and provide family-based self-sustainability and income.”

Akinderu-Fatai added that the state government would continue to support institutions like LBIC to expand housing supply and improve affordability.