Living Trust Mortgage Bank: Gained huge profit despite challenges
By Philemon Adedeji
Living Trust Mortgage Bank plc is a financial services institution in Nigeria offering banking products and services for the retail, commercial and corporate sectors. It was established to provide mortgage banking services, mortgage financing, real estate, construction financing and general financial services.
Living Trust Mortgage Bank plc, in its unaudited financial statement for the half year ended 30th June. 2022 released, declared an improvement in gross earnings that finally emerged on a huge profit.
Such impressive performance on gross earnings is due to an improvement that occurred in profit which the bank derived showed during the period.
Specifically, Profit After Tax ( PAT) recorded in the half year H1 2022 increased very stronger than the one achieved in the half year H1 2021.
It is worth noting that the bank profitability ratios will remain on profit gain.
Living Trust Mortgage Bank, its unaudited financial statement for the half year H1 2022 showed huge increase in its gross earnings from the half year H1 2021 financial result.
The Bank recorded 68.6 per cent growth in gross earnings, what this figure signifies that the rate of sale moved higher better than it did in the half year H1 2021.The bank gross earnings largely increased to N1.119 billion in the half year H1 2022 up from N664.1 million in the half year 2021.
It is worth noting that 68.6 per cent growth rate occurred in gross earnings is a very good performance when doing comparison with the bank average for the same period under review.
The total assets reported in the half year H1 2022 stood at the sum of N11.838 billion from N11.386 billion achieved in the half year H1 2021, the growth reflects an improvement of 3.9 per cent.
The total liabilities deployed by the Bank for the half year H1 2022 largely increased to N8.798 billion, 55 per cent more than N5.668 billion reported in the half year H1 2021.
Living Trust Mortgage Bank during the period declared a Profit Before Tax ( PBT) expenses that rose to N531.017 million as against N308.3 million generated in the half year H1 2021, reflecting a growth of 72.3 per cent
The bank Profit After Tax (PAT) which increased significantly to N489.620 million in the half year H1 2022, reflecting a growth of 58.8 per cent from N308.3 million generated in the half year H1 2021.
The group reported earnings per share which rose by 136 per cent to N9.79 kobo derived in Half year H1 2022 from N4.15 kobo derived in half year H1 2021.
However, total operating income declared by the group grew to N937.033 million in half year H1 2022 from N576.8 million in half year H1 of 2021, this revealed an improvement of 62 per cent, as net operating income appreciated to a 58.6 per cent which moved significantly from N902.9 million in half year H1 2021 to N569.173 million in half year H1 2022.
Another top-line performance in the unaudited financial statement ended 30th June 2022, is net interest income which gained 103 per cent to N666.5 million in H1 2022 from N328 million in half year H1 2021.
But, total equity had a challenge which depreciated by 3.8 per cent to N2.924 billion in half year H1 2022 from N3.041 billion in half year H1 2021.
PROFITABILITY RATIOS
In a view from the analysis, Living Trust Mortgage Bank has recorded profitability for the half year H1 2022 unaudited financial result, However when comparing to its half year H1 preceding result, most of the parameters showed an impressive performance.
Firstly, to achieved profit margin of the bank, appreciating to 47.4 per cent in the half year 2022 from 46.4 per cent in the half year H1 2021, what this means is that for every N100 earned by the Bank in the cause of the year, N47.40 of it can be translated to profit higher than N46.40 of the half year H1 2021.
