Infinity Trust Mortgage Bank to raise N50bn, invest in technology to fuel expansion
By Esther Agbo
Infinity Trust Mortgage Bank (ITMB) announced plans to raise N50 billion through a capital market offering, a move aimed at expanding its operations and transitioning into a digital commercial bank.
The N50 billion is said to be raised through private placement.
This announcement was by the Acting Managing Director and CEO of (ITMB), Mrs. Ngozi Chukwu, during the “Fact Behind the Figures” event hosted by the Nigerian Exchange Limited (NGX) in Lagos, an event which underscores NGX’s commitment to transparency and engagement within the capital markets.
Mrs. Chukwu emphasised that a significant portion of the capital raised will be allocated to technological advancements.
This investment is expected to enhance the bank’s digital capabilities, streamline operations, and lower costs, ultimately allowing Infinity Trust Mortgage Bank (ITMB) to offer more affordable products to its customers.
“50 percent of the 50 billion will be kept as liquidity backup, but we are going to expend 50 percent. And if you notice, in the expenditure table, we are marking 20 per cent for technology, so this is a testament that, indeed, our processes, our operations are going to be technology-driven.
“We are going fully technological. And then we also hope that with technology, we are going to be able to increase the returns on investment that you are going to be making with us. We are going to reduce the cost of operations, and essentially, we are going to be better for it.”
Chairman of Infinity Trust Mortgage Bank, Mrs. Okwa Ene Iyana, expressed her pride in the bank’s achievements and its unwavering commitment to excellence.
She highlighted the bank’s consistent dividend payments since its listing on NGX in 2013, a testament to its financial stability and commitment to shareholder value.
“To set the record straight, I am glad and I feel proud to announce that since Infinity Trust Mortgage bank, PLC was listed on this floor in 2013, to date, the bank has not missed a dividend payment in the fifth month of every year,” she stated.
ITMB, which began in 2002 with a modest capital base of N100 million, has grown into a key player in Nigeria’s mortgage industry.
The capital raised will also enable ITMB to extend financing to underserved sectors, particularly Micro, Small, and Medium Enterprises (MSMEs), which have historically faced challenges in accessing credit.
“0.3 percent is way too small for the sector that drives economic growth. Over 75 percent of MSMEs rely on internal capital to grow, which is considered largely inadequate and, of course, inefficient.
“We will leverage technology and digital tools to reach the target customers in an efficient manner that will lead to lower interest rates, higher returns through volume of transactions, so technology here is very key for us.
“We’ll provide financial services to underserved and underbanked individuals to align with the CBN strategic goals of increasing financial inclusion by 80 per cent.
“We also will leverage on data collection, so we are not only just going to be rolling out products, we are going to do our research using data and technology to understand the needs of our customers.”
The CEO of the Nigerian Exchange Limited, Mr. Jude Chiemeka, highlighted Infinity Trust’s strategic initiatives, financial performance, and future outlook.
He praised the bank’s management for their dedication to enhancing operations and restoring investor confidence despite economic challenges.
He emphasised NGX’s role as a multi-asset exchange, facilitating capital raising and providing a robust platform for market participants, supported by advanced technology and infrastructure.
He said, “Despite the prevailing economic challenges, NGX acknowledges the efforts of Infinity Trust Board and management in enhancing its operations, promoting business continuity, and restoring investor confidence.
“Their commitment and dedication to these goals reflects their resilience and adaptability, and these are essential in today’s market environment. At NGX, we are more than just an exchange. We are a multi-asset exchange, providing products that include bonds, ETFs, derivatives, and more.”
Mr. Chiemeka noted that NGX’s recent efforts, including the launch of the NGX Invest platform and advocacy for tax reforms, have been pivotal in increasing market participation and enhancing Nigeria’s visibility on the global stage.
The platform simplifies investment processes, particularly for tech-savvy young Nigerians, and supports infrastructure funding through targeted financial instruments.
He also pointed out the increase in international market participation, which rose from 4 per cent to 20 per cent, as a result of strategic engagements with global investors.
The decision to raise funds is part of ITMB’s broader strategy to deepen its market penetration and address Nigeria’s significant housing deficit.
Over the past four years, the bank has shown impressive financial growth, in 2020, gross earnings were N1.3 billion, which increased to N2.9 billion by the close of 2023, the first half of 2024 alone saw earnings reach N1.7 billion with confidence that this amount will rise further by the end of the year.
Net operating income also experienced substantial growth, climbing from N1.09 billion in 2020 to N2.2 billion in 2023. As of the first half of 2024, net operating income is at N1.3 billion.
Regarding profit after tax, and also progressed from N0.41 billion in 2020 to N1 billion by the end of 2023. As of today in 2024, it stands at N0.71 billion, with expectations that this will triple by year-end.
However, its loans and advances portfolio saw significant expansion as well, rising from N7.1 billion at the close of 2020 to N15.4 billion by 2023. By the first half of 2024, this figure has grown to N16.4 billion, and with the year only halfway through, we expect even more growth by the end of the year.
