Lagos Building Investment Company Plc (LBIC) Demonstrates Robust Financial Performance in 2024 Amidst Challenging Economic Climate
Lagos Building Investment Company Plc (LBIC) has announced impressive financial results for the fiscal year 2024, demonstrating resilience and strategic adaptability in the face of a complex global economic landscape. The company reported a significant 40% surge in Profit Before Tax (PBT), reaching N1.16 billion, compared to N829 million in the previous year. This remarkable achievement is attributed to the company’s innovative strategies, proactive pursuit of new opportunities, and unwavering commitment to delivering sustainable value to its stakeholders. This positive performance was revealed during the company’s recently concluded Annual General Meeting held in Ikeja, Lagos.
LBIC’s Chairman, Hakeem Ogunniran, acknowledged the challenging operating environment, marked by geopolitical tensions, inflationary pressures, and supply chain disruptions, yet emphasized the company’s ability to navigate these difficulties effectively. He credited the company’s success to its dynamic approach, which involves adapting strategies, capitalizing on emerging opportunities, and prioritizing stakeholder value creation. The Chairman highlighted key financial indicators that underscore LBIC’s strong performance. Gross earnings witnessed a substantial 58% increase, rising from N1.608 billion to N2.537 billion. Mortgage loans also experienced healthy growth, increasing by 8% to N794 million, while customer deposits saw a remarkable 147% surge, reaching N11.336 billion. These figures reflect the company’s robust financial health and its ability to attract and retain customer confidence.
Furthermore, LBIC maintained a well-structured and diversified balance sheet, with total assets reaching N17.222 billion and shareholders’ funds standing at N4.876 billion. The company’s commitment to sound financial management is further evidenced by its impressive Non-Performing Loan (NPL) ratio of 0.00%, highlighting its prudent lending practices and effective risk management strategies. This achievement underscores LBIC’s consistent focus on maintaining a healthy loan portfolio and minimizing credit risk.
Olusola Faleye, Managing Director of LBIC, provided further context to the company’s performance, elaborating on the global economic challenges that characterized 2024. He pointed to escalating geopolitical tensions, which significantly impacted global trade, investment flows, and diplomatic relations. These tensions exacerbated inflationary pressures, disrupted supply chains, and dampened growth prospects, particularly in advanced economies. Developing and frontier economies faced additional challenges, including a growing debt burden. Faleye described the overall global economic sentiment in 2024 as a mixture of obstacles and opportunities, highlighting the complex and dynamic environment in which LBIC operated.
Despite these global headwinds, LBIC’s strategic focus and proactive approach allowed it to navigate the challenging landscape effectively. The company’s commitment to innovation, coupled with its ability to identify and capitalize on new opportunities, contributed significantly to its robust financial performance. This demonstrates LBIC’s adaptability and resilience in the face of external pressures.
In recognition of its positive financial performance and commitment to shareholder value, LBIC’s Board of Directors recommended the payment of a final dividend of 6.12 kobo per share, totaling N237,581,290.05, for the financial year ended December 31, 2024. This dividend payout reflects the company’s commitment to rewarding its shareholders and sharing the fruits of its success. Chairman Ogunniran noted that over the past four years, LBIC has focused on eliminating inherited negative earnings and strengthening its financial position. The declaration of a dividend underscores the company’s progress in achieving these objectives and its commitment to delivering long-term value to its shareholders. This dividend payout marks a significant milestone for LBIC, demonstrating its financial strength and its ability to generate sustainable returns for its investors. It also signals the company’s confidence in its future prospects and its commitment to continuing its growth trajectory.
Furthermore, LBIC’s strong financial performance in 2024 can be attributed to several key factors, including its strategic focus on key market segments, its commitment to customer service excellence, and its ability to attract and retain top talent. The company’s deep understanding of the local market dynamics, combined with its ability to anticipate and respond to changing customer needs, has allowed it to capture significant market share and maintain a competitive edge.
In addition, LBIC’s investment in technology and innovation has played a crucial role in its success. The company has embraced digital transformation, leveraging technology to enhance its operational efficiency, improve customer experience, and develop new products and services. This forward-thinking approach has allowed LBIC to stay ahead of the curve and maintain its position as a leader in the industry.
Looking ahead, LBIC is well-positioned to continue its growth trajectory, driven by its strong financial foundation, its strategic focus, and its commitment to innovation. The company’s management team has expressed confidence in its ability to navigate the evolving economic landscape and capitalize on emerging opportunities. This optimism is based on LBIC’s proven track record of success, its strong brand reputation, and its deep understanding of the market.
In conclusion, LBIC’s remarkable financial performance in 2024, amidst a challenging global economic environment, is a testament to its resilience, adaptability, and strategic prowess. The company’s commitment to innovation, customer service excellence, and sound financial management has enabled it to achieve significant growth and deliver strong returns to its stakeholders. As LBIC looks to the future, it remains committed to its core values and its vision of becoming a leading player in the financial services industry. The company’s strong foundation, coupled with its forward-thinking approach, positions it well for continued success in the years to come.
