Infinity Trust Mortgage Bank announces 2.7% increase in profit, proposes N0.04 dividend
Infinity Trust Mortgage Bank Plc listed on the Nigerian Stock Exchange (NSE) has announced 2.7 per cent increase in profit to N411million in 2020 audited results from N400.14million reported in 2019.
The Bank has maintained feat in 13 consecutive years with dividend payout to shareholders.
The management in its 2020 results proposed a final dividend of 4k for every ordinary share held (an increase from 3.5k in 2019), bringing to 14 consecutive years, the Bank’s payment of dividends to its shareholders.
Decline in profit can be attributable to N48.3million income tax expenses in 2020 from N42.24million reported in 2019 while deferred tax expense grew by 182per cent to N5.6million from N2million in 2019.
The Mortgage Bank also reported N465.06 million profit before tax, about five per cent increase over N444.38million reported in 2019.
Infinity Trust Mortgage Bank reported about five per cent decline in revenue tp N1.32billion in 2020 from N1.38billion in 2019.
Our correspondent gathered that the company reported N13.3billion total assets in 2020 from N10.6billion in 2019, while total equity closed 2020 at N6.44billion from N6.2billion in 2019.
Chairman, Board of Directors, Infinity Trust Mortgage Bank, Engr. Dr. Adeyinka Bibilari, in a statement said, “The years are full of uncertainty, but we believe that if we could post this kind of superlative performance in a pandemic year, we can do much more in the years ahead no matter the challenge.
“With the dedicated loyalty and support of you, my highly esteemed shareholders, our regulators, business partners, customers and staff, we know that we shall overcome every impediment and challenge in our path. Nothing can stop our progress and growth.”
According to Bibilari, “Sprouting from the impact of the transformative changes that our Bank deployed in its business, operational and financial strategies to combat the COVID-19 pandemic, our Bank achieved a profit before taxation (PBT) of N465 million.
“This means that the Bank has remained consistently profitable for 15 consecutive years. Even though gross earnings reduced slightly by five per cent from N1.383 billion in 2019 to N1.315 billion in 2020, concerted expenditure strategy reduced total operating expenses by 15 per cent from N740 million in 2019 to N625 million in 2020 resulting in the PBT of N465million, an increase of five per cent over last year’s N444.4million.
“Customer deposits increased significantly by 94.5 per cent from N1.937million in 2019 to N3.765 in 2020 due to our spirited customer engagement strategy.
“We continued to demonstrate our passion for mortgage expansion as loans grew by 33 per cent from N5.338billion in 2019 to N7.118 billion in 2020. Houses held for sale also decreased by 28 per cent 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 per cent from N2.492 billion to N2.682 billion. Total assets also grew from N10.644 billion in 2019 to N13.342 billion in 2020, while shareholders’ funds grew by four per cent from N6.202 billion in 2019 to N6.438 billion in 2020.”
Speaking on outlook, he said, “We constantly and strongly desire to reposition the bank for greater relevance, impact and service delivery in the years ahead. We are unshakable in our resolve to be the industry leader through the deployment of transformative strategies, unparalleled service delivery and technological innovation.
“In 2021, we shall continuously steer and stay true to our strategic growth plan, in our bid to propel the Bank to national and global visibility and relevance.
“We shall continue to evolve business, operational and financial strategies that will moderate business risks as we deepen our market penetration. We shall strengthen our revenue assurance function as well as our expenditure control framework and also continue to leverage on corporate rebranding, existing regulatory support and industry drivers to achieve our corporate objectives.
“We shall also continue to support public and private housing and mortgage initiatives aimed at bridging the housing gap and mortgage inclusion. We shall also continue to reinforce our collaboration with the Federal Mortgage Bank of Nigeria, Nigeria Mortgage Refinance Company Plc, Mortgage Warehouse Fund Limited and Mortgage Guarantee Company Limited, in improving liquidity and financing for mortgages.”
