AMCON Declares N823b Loss

Asset Management Corporation of Nigeria (AMCON) recorded a loss of N823 billion in the 2012 financial year.

 

The corporation’s Executive Director, Finance, Mrs Mofoluke Dosunmu while presenting the 2012 financial scorecard in Lagos said the loss arose from the cost of its recapitalization of banks which amounted to N278 billion against N2.3 trillion recorded in 2011 financial year as well as non-performing loans of N545 billion. She added that 78 per cent of the loss accounted for the cost of financial accommodation on saving deposits since the inauguration of the corporation.

 

Dosunmu said part of the AMCON’s N5.7 trillion bonds issued in 2011 upon intervention in eight banks would mature by the end of this year and the corporation would immediately redeem its pledges.

 

“AMCON’s N5.7 trillion bonds issued will mature. The corporation will ensure that all obligations are fully redeemed starting from December this year. The objective is that at the end of the financing plans, AMCON bonds will have been totally taken out of the market. The fear of most institutions for having AMCON in their books will be totally removed by December,” she said.

 

The corporation recorded a gross earnings of N42.96 billion and liabilities of N5.45 trillion.

The Executive Director noted that sale of its three bridge banks, Enterprise Bank, Mainstreet Bank and Keystone Bank would be concluded by the end of 2015 as AMCON’s main focus in 2014 would include the sale of the three banks, bond refinancing, recovery of non-performing loans, restructuring of non-performing loans and amendment of its Act currently before the National Assembly.

 

So far “We have been able to restructure N213 billion loans. These are mainly by those who have substantial agreements with the lenders in terms of equity or property swap.  These debtors are servicing their loans regularly. In terms of those that have paid totally, 4.6 per cent of the portfolio. As at 2013, 50 per cent of our portfolio has reached agreement for payment against 22 per cent recorded previous year,” Dosunmu said recorded a loss of N823 billion in the 2012 financial year.

 

The corporation’s Executive Director, Finance, Mrs Mofoluke Dosunmu while presenting the 2012 financial scorecard in Lagos said the loss arose from the cost of its recapitalization of banks which amounted to N278 billion against N2.3 trillion recorded in 2011 financial year as well as non-performing loans of N545 billion. She added that 78 per cent of the loss accounted for the cost of financial accommodation on saving deposits since the inauguration of the corporation.

 

Dosunmu said part of the AMCON’s N5.7 trillion bonds issued in 2011 upon intervention in eight banks would mature by the end of this year and the corporation would immediately redeem its pledges.

 

“AMCON’s N5.7 trillion bonds issued will mature. The corporation will ensure that all obligations are fully redeemed starting from December this year. The objective is that at the end of the financing plans, AMCON bonds will have been totally taken out of the market. The fear of most institutions for having AMCON in their books will be totally removed by December,” she said.

 

The corporation recorded a gross earnings of N42.96 billion and liabilities of N5.45 trillion.

The Executive Director noted that sale of its three bridge banks, Enterprise Bank, Mainstreet Bank and Keystone Bank would be concluded by the end of 2015 as AMCON’s main focus in 2014 would include the sale of the three banks, bond refinancing, recovery of non-performing loans, restructuring of non-performing loans and amendment of its Act currently before the National Assembly.

 

So far “We have been able to restructure N213 billion loans. These are mainly by those who have substantial agreements with the lenders in terms of equity or property swap.  These debtors are servicing their loans regularly. In terms of those that have paid totally, 4.6 per cent of the portfolio. As at 2013, 50 per cent of our portfolio has reached agreement for payment against 22 per cent recorded previous year,” Dosunmu said

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