Opeyemi Issa InvestAdvocate

Lagos (INVESTADVOCATE)- Abbey Building Society Plc (Abbey) Friday reported that it Profit After Tax (PAT) has declined by 55.2 percent (55.2%) in its Audited Report for the Period Ended December 31 2011.

This was contained in the Result Announcement from the Company to the Nigerian Stock Exchange (NSE) in Lagos Nigeria and obtained by www.investadvocateng.com.

To record the decline, Abbey posted a PAT of N126.292 million for the 2011 end compared N281.920 million; showing a decline of 55.2% in the review period.

While Profit Before Tax (PBT) also dipped by 36.9%, the Company recorded N376.192 million in year 2010 compared to N237.380 million in the review period of year 2011.

Gross Earnings of the Firm in the review period also decreased from N1.694 billion in year 2010 end compared to N1.578 billion in the review period of year 2011 end.

As earlier reported, Abbey had notified the Nigeria’s Exchange November 29 2010 that it is to shore up its Capital Base to the tune of N20 billion.

Following an Extraordinary General Meeting (EGM) held Wednesday November 24 2010; shareholders of the Company authorised its Board of Director (BOD) to raise the fund whether by way of   Public Offering, Placing, Rights Issue, Book Building process or other methods.

This the shareholders affirmed should be by way of issuance of shares, convertible or non convertible loans, stock, medium term notes, bonds or other securities, in such tranches, series or proportions, at such coupon or interest rates, within such maturity periods and on such other terms and conditions including the provision of security for payment, as the Directors may deem fit or determine, subject to obtaining the approvals of relevant regulatory authorities.

Prior to this time, Abbey through the NSE announced that it has secured a $10 million (1.5 billion) convertible loan from the Netherlands Development Corporation Company also identified as FMO.

Rose Ada Okwechime, Managing Director/Chief Executive Officer (MD/CEO) of the Primary Mortgage Institution (PMI) had affirmed that Abbey would use the loan in enhancing housing and mortgage facilities for cooperatives with good track records; support bona fide Estate Developers as well as Corporate Organisations in their housing needs.

Also, the Company got AFRICINVEST Financial Sector Limited of Tunisia to invest in the equity of Abbey to the tune of Euro1.25 million and Euro1.25 million convertible loan in April, 2008.

The Company in October year 2009 took a facility loan of $5 million from Shelter Afrique of Nairobi, Kenya. The Company had affirmed that the loan will enable it further strengthen its core business of mortgage lending and construction finance in Nigeria.