Lagos Building Investment Firm Reports 43% Pre-tax Profit Growth, Plans Fresh Capital Raise

Lagos Building Investment Company (LBIC) Plc has reported an impressive 43 per cent increase in profit before tax, reaching N1.655 billion for the fiscal year ending December 31, 2025.

This development was stated by the Board chairman, Hakeem Ogunniran, during the company’s 21st Annual General Meeting in Lagos.

Shareholders approved a plan to increase the company’s issued share capital from N3.882 billion to N4.4 billion by creating an additional 517.606 million ordinary shares valued at N1.00 each.

Ogunniran highlighted that this strong performance demonstrates the company’s resilience and ability to navigate macroeconomic challenges effectively.

“Our year-end results signify growth across key performance indicators, highlighting our strength and the opportunities present in the market,” he stated.

Gross earnings rose by 41 per cent to N3.565 billion in 2025, compared to N2.537 billion in 2024.

Furthermore, the company’s mortgage portfolio surged by 161 per cent to N2.072 billion, and customer deposits increased by 17 per cent to N13.314 billion.

Total assets now stand at N20.614 billion, with shareholders’ funds at N5.431 billion and a solid capital adequacy ratio of 37 per cent.

In light of this positive performance, the board has proposed a dividend of N0.068 per share, amounting to N263.979 million, reaffirming their commitment to delivering consistent value and rewarding shareholder confidence. Notably, the company has maintained a non-performing loan ratio of zero percent as of December 2025.

Looking ahead, Ogunniran expressed optimism for 2026 despite ongoing domestic and global uncertainties, saying that “the company intends to capitalise on its 2025 performance by focusing on enhancing digital capabilities, expanding mortgage and retail lending, and improving deposit mobilisation.”

He emphasised the importance of prudent risk management to safeguard asset quality and capital while leveraging innovation and partnerships to diversify revenue streams.

With the goal of promoting sustainable growth and expanding homeownership, Ogunniran reassured stakeholders that LBIC’s strategy will involve surpassing regulatory capital requirements and implementing advanced technology alongside disciplined risk management.

Managing director, LBIC, Olusola Faleye, provided insights into the firm’s positive performance, attributing it to disciplined execution and careful management.

Faleye expressed enthusiasm for the opportunities within Nigeria’s mortgage sector, despite prevailing economic challenges.

He added that “as part of its growth strategy, the company plans to increase its issued share capital, thereby strengthening its financial position.”

He highlighted that LBIC is accelerating its digital transformation to enhance both efficiency and customer experience. Recent initiatives include completing the E-Tax integration to promote transparency and compliance in property transactions, and nearing completion of an upgrade to its core banking system, which will facilitate real-time processing and improved service delivery.

He noted that the company is also in the final stages of developing its mobile app and internet banking platforms, featuring biometric login, loan tracking, and instant notifications.

Governor Babajide Sanwo-Olu commended the LBIC board for their commitment to enhancing housing finance.

Represented by the commissioner for Housing, Moruf Akinderu-Fatai, he remarked on the critical role organiasations like LBIC play in addressing the housing challenge, emphasising that housing is not merely a social need but a vital economic driver.