Infinity Trust Mortgage Bank posts higher profit, boosts dividend
Infinity Trust Mortgage Bank Plc has reported a profit after tax of N411.11 million for the financial year 2020, up from N400.14 million in the previous year.
The bank’s profit before tax increased to N465.06 million last year from N444.38 million in 2019, according to its audited financial statements obtained by Markets Reporters on Sunday.
Its gross earnings fell to N1.32 billion from N1.38 billion and total operating expenses dropped by 15 percent from N740 million in 2019 to N625 million in 2020.
The Chairman, Board of Directors, Dr Adeyinka Bibilari, said the bank’s customer deposits increased significantly by 94.5 percent from N1.94 billion in 2019 to N3.77 billion in 2020 due to its spirited customer engagement strategy.
He said, “We continued to demonstrate our passion for mortgage expansion as loans grew by 33 percent from N5.34 billion in 2019 to N7.12 billion in 2020. Houses held for sale also decreased by 28 percent from N31.9 million to N23.0 million during the period under review.
“Secondary market operations represented by on-lending and refinancing activities also witnessed a growth of 25 percent from N2.49 billion to N2.68 billion. Total assets also grew from N10.64 billion in 2019 to N13.34 billion in 2020, while shareholders’ funds grew by four percent from N6.20 billion in 2019 to N6.44 billion in 2020.”
He said the board proposed a final dividend of 4 kobo for every ordinary share held, an increase from 3.5 kobo in 2019.
Bibilari noted that the mortgage banking industry in Nigeria also witnessed a slowdown due to the COVID-19 pandemic with business activities adversely impacted by the six-week lockdown restrictions in major cities in the first half of 2020.
“The mortgage banking industry thus suffered a drop in disbursements and an increase in NPLs (non-performing loans) at the height of the pandemic but has witnessed some recovery from the second half of the year as businesses reopened,” he said.
The Managing Director/Chief Executive Officer, Dr Olabanjo Obaleye, said the bank remained profitable in 2020 for the 15th consecutive year.
He said, “This is a testament to our ability to turn challenges into opportunities and harness the collective will of our internal and external stakeholders in achieving our organizational objectives.
“As a bank, we have continued to meet all regulatory, prudential, and internal operating ratios. With a Capital Adequacy Ratio of 57 percent and Liquidity Ratio of 66 percent, the bank is well positioned to take advantage of profitable business opportunities and meet its maturing obligations.”
