Cititrust-Backed Living Trust Mortgage Bank Sees Earnings Jump in Q3

Cititrust-Backed Living Trust Mortgage Bank Sees Earnings Jump in Q3

Cititrust-backed primary mortgage bank, Living Trust, sees a strong earnings jump in the third quarter of the financial year 2021 amidst a free-float compliance issue on the local bourse. With a free float of 0.9%, Living Trust Mortgage bank Plc has failed to comply with the Nigerian Exchange requirement, detail from the unaudited financial statement shows.

In the last 12-month, Cititrust Holdings Plc has raised its stake in the mortgage company, from 30.66% in September 2020 to a majority stake of 59.91% within a year.

Osun State government however maintained stable shares ownership at 18.19% the same way Osun State Local Government Areas keeps stake in the company at 21.80% year on year. These entities have a combined ownership of 99.01% as of the end of the third-quarter earnings season while the share price gained 5 kobo in the last 7-trading session following a minimal demand.

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Data from the Nigerian Exchange shows the mortgage financing company is currently valued at N3.65 billion on 5 billion shares outstanding, traded at 73 kobo on Friday amidst the ongoing stock market rallies.

Living Trust Mortgage bank Plc.’s earnings per share see significant growth in the last 12-months, probably as a result of the base effect, rising from 2.26 kobo to 10.67 kobo in the period.

At the end of 9-months in the financial year 2021, the mortgage financier gross earnings spiked significantly to N1.119 billion from N423.085 million in the comparable period in 2020.

Revenue boost was driven by improvement recorded in interest income from its buckets of interest yielding assets as well as fees and commissions earned as the Nigerian economy makes a quick recovery after the lockdown. The company’s asset quality appears to have deteriorated, resulting in higher impairment charges against the income statement in the period.

Living Trust Mortgage bank unaudited financial statement credit losses charge expanded to more than N17.7 million from N6.319 million in the comparable period last year.  

Despite the increase in its operating expenses, profit for the period was boosted, driven a better topline growth, supported by a meteoric jump in fees and commission income.

Amidst steep inflation rate in the country, Living Trust Mortgage bank operating expenses expanded to N416.790 million from N269.559 million in the comparable period in 2020, reflecting activities recovery from lockdown initiated to stem rising COVID-19 crisis.

It was noted that personnel payroll costs drove the increase in the company’s total expenses in the period in addition to a steep rise in ‘other’ operating overheard.

Profit for the period printed at N533.298 million as against N269.559 million reported at the end of September 2020.

Following N50million dividend payment from retained earnings, Living Trust Mortgage bank’s shareholders’ fund has a carrying value of N2.727 billion at the end of 9-months to financial year-end, from N2.777 billion.

The primary mortgage lender closed the period with N10.509 billion in total assets, from N6.297 billion at the beginning of the year. This was driven by increased loans and advances, other assets and investment in properties.

On the other hand, its total liabilities expanded in the same manner due to strong customers deposit growth, debts issued in addition to borrowed funds in the period. There was also an increase in other liabilities lines. #Cititrust-Backed Living Trust Mortgage Bank Sees Earnings Jump in Q3