Resort Savings full year loss widens to N947.4m

… Shareholders fund depletes by 44.46%; key audit matters raised

The full year Loss After Taxation ( LAT) of Resort Savings and Loans P lc expanded by 36.98 percent to N947.430million in 2017, from a lower Loss After Tax (LAT) of N691.648 million the company reported in the preceding full year 2016.

It s recent l y released full year scorecard at the Nigerian Stock Exchange ( NSE) for the period ended December 31, 2017 shows Resort Savings and Loans Plc top- to- bottom line figures were in the red.

The company’s Gross Earnings decreased by 44.50 percent to N490.578 million in 2017 from N883.993 million in 2016. Its interest income decreased by 22.83 percent to N415.837 million, from N538.858 million recorded in 2016. Its fee and commission income decreased by 91.68 percent to N8.925 million, representing a decline from N107.225 million reported in 2016. Investment income of N11.163 million as against N15.561 million in 2016 represents 28.26 percent decline.

Loss before i ncome tax of N933.374 million shows a decline of 37.86 percent, f rom N677.022 million in 2016. Total Asset depleted by 6.16 percent to N7.181 billion, f rom N7.653 billion in 2016. Total Liabilities of N10.260 billion in 2017 represents 4.86 p e rcent increase compared with N9.784 billion total liabilities in 2016. Shareholders fund depleted by 44.46 percent to N3.078 billion as against N2.131 billion recorded in 2016 financial year.

The directors of the company in their report said they assessed the bank’s future performance and financial position on an ongoing basis and “have no reason to believe that the bank will not be a going concern in the next twelve (12) months from the date of this report. For this reason, these financial statements are prepared on a going-concern basis.”

“One of the Directors of the Company raised a whistle blowing petitions to regulators during the financial year bothering on perceived fraud. However, the matter is still under investigation by regulatory agencies”, the directors noted.

Independent auditors in their report to the members of Resort Savings and Loans Plc raised key audit matters. “Substantial portion of directors’ loan which was written-off in 2011 as bad due to its nonperforming nature was written back into the books in line with Central Bank of Nigeria (CBN) directive. The amount of the loan was N2billion. Necessary entries had been passed to reinstate the loan earlier written-off from the books. Interest had however been suspended on the loan balance.

“The matter is considered key audit matter due to the materiality of the amount involved to the operation of the bank and in compliance with the directive of the apex Bank” BBC Professionals, the independent auditors to the Resort Savings and Loans Plc noted in their report. The independent auditors added: “The bank is required by Central Bank of Nigeria (CBN) to inject minimum fresh capital of N10.793 billion to meet the minimum capital requirement of a Mortgage Bank.”

Resort Savings & Loans Plc is duly licensed to carry on Mortgage banking business. It is a primary Mortgage Bank (PMB) authorised to receive deposits and maintain accounts for their customers for the purpose of providing service, creating mortgage assets and other credit facilities.

The bank has been actively involved in the provision of retail Mortgage Banking Services to variety of its customers to own their own houses. Resort Savings and Loans Plc is actively involved in the National Housing Fund loan disbursement and the monthly NHF remittance collection. The bank is also engaged in the provision of liability management through its product range. Some of these include Resort Insurance-linked Mortgage Fund ( RILMFUND) , Resort

Asset and Liquidity Jewel, Current Account, Savings and Tenor Deposits.

Resort Savings & Loans Plc fully owned subsidiary; Resort Developers Limited carries on the business of real estate development, management and loan syndication and consulting services.