Resort Savings and Loans Plc recorded a loss of N1bn in the year 2011.

According to the company’s Managing Director, Mr. Abimbola Olayinka, the mortgage bank had a rough financial year in 2010, which resulted in the loss.

He said, “The year 2011 has been a clean-up year for the bank, we made huge provisions for accounts but it invariably led to our incurring a loss before tax of N1bn.”

He, however, stated that the company’s management had made moves to make the company’s assets perform, adding that it was also strategising on how to redeem loans.

He admitted that the mortgage bank had to deal with non-performing loans but stressed that it would not relent in its efforts to recover the amounts due.

He said, “Our bank has been saddled with a high volume of insider related non-performing credits and this culminated in operating losses. Nevertheless, it is important to state here that management is not relenting in recovering all amounts due.”

Olayinka also stated that the new policy in the operation of mortgage banks was found challenging, saying there were areas in it that needed to be reviewed.

“The policy limits the extent to which mortgage banks conduct regular banking businesses and their involvement in real estate development. Under the auspices of the Mortgage Bankers Association of Nigeria, we are engaging the Central Bank of Nigeria on the need to take a second look at some areas of the new policy,” Olayinka stated.

On the acquisition of the statutory capital stated in the new policy, the Resort Savings and Loans boss said that the company was making moves to come to the market.

He said, “Stakeholders unanimously agreed on our bid of coming into the market and we are basically selling liquid stocks to get our statutory obligation.”

On the outlook of the company, Olayinka said managing risks in assets and better customer service would be important areas of focus for effective operation.

“Managing growth in our risk assets portfolio and creating unrivalled customer service experience is going to be our key factor in effective operation,” he said.

Source: Punch (written by Ayomikun Abiola)