Infinity Trust Mortgage Bank Boosts Profitability 52% in 12-Month

Olabanjo Obalaye, Chief Executive, Infinity Trust Mortgage Bank

Infinity Trust Mortgage Bank Boosts Profitability 52% in 12-Month

One of Nigeria’s leading financial services operators, Infinity Trust Mortgage Bank Plc records a sky-high earnings jump amidst a tough operating environment. The mortgage financier boosts profitability by 52% in 12-month, according to its unaudited financial statement submitted to the Nigerian Exchange.

Mortgage financing company’s profit after tax inches higher to N447.069 million, translating to a 52% increase from N293.456 million recorded in the comparable period in the financial year 2020.

With a relatively flattish price record in the local bourse despite the ongoing stock market rallies, Infinity Trust is currently valued at N5.5 billion on 4.17 billion shares outstanding.

A detailed look at the mortgage financing bank shows there was a significant jump in turnover from January to September 2021. Turnover for this period settled at N1.235 billion, from N993.856 million in the comparable period last year.

It was noted that a significant chunk of the mortgage lender’s revenue was derived from interest income from assets. Its unaudited statement shows that Infinity Trust interest and similar income printed at N949.397 million from N763.611 million in 2020.

National Housing fund loans attracted N74.979 million interest income, which is more than 28% above N58.422 billion earned from the assets in the comparable period in 2020.

Infinity Trust interest income from estate mortgage records a sky-high jump, up by more than 186% from N44.070 million as of 9-month in 2020 to N126.241 million 12-months after.

Though slowdown, fees and commission income from operation provide support to the mortgage lender’s earnings in the period. Also, other income sources helped push Infinity Trust operating income higher.

In the 9-month results, income from fees and commission services dropped to N83.421 million compare with N88.392 million reported a year ago.

Between July and September 2021 Infinity earned N23.452 million from fees and commission related services. This represents a slide when compared with N34.722 million reported in the comparable period in 2020.

However, other operating income sources expanded hit N201.098 million from N141.452 million a year ago. In the last three months to September, the mortgage lender gets N77.031 million from other operating income sources, a steep growth when compared with N24.786 million recorded in a similar period last year.

Infinity operation faced some sort of pressure that impacted the quality of its asset as reflected in impairment charges on credit losses in the period. Credit losses expenses booked in the 9-months of 2021 was more than 300% charged against the income statement in 2020.

Its unaudited statement shows that credit losses expenses hit N17.783 million as of the 9-months 2021 from N4.238 million in the comparable period in 2020.

In the period, the company spent more on its payroll amidst the steep inflation rate in the country. Personnel expenses jumped to N210.553 million, a 17% of total revenue generated in the period, from N162.273 million in the last 12-months.

Basically, the upsurge was driven by increased payroll, pension and ‘other’ staff costs – all the item lines witnessed an uptick in the period.

Recording a moderate growth of 3%, Infinity Trust Mortgage bank overall operating expenses was N555.387 million in the 9-months of 2021 result, as against N540.486 million in the comparable period in 2021.

With a total equity position valued at N6.228 billion, mortgage lender reported earnings per share of 13.29 kobo, represent a strong improvement when compare with 8.37 kobo reported 12-month ago.

Infinity Trust total assets expanded to N15.570 billion from N13.342 billion at the beginning of the year, driven by increased loans and advances, supported further by investment securities.

On the liabilities side, the company raised total borrowings to N3.611 billion from N2.682 billion at the beginning of the year to date. Its customers’ dues expanded to N4.652 billion from N3.765 billion. #Infinity Trust Mortgage Bank Boosts Profitability 52% in 12-Month