Infinity Trust’s half-year profit hits 7-year high on interest income surge

Infinity Trust’s half-year profit hits 7-year high on interest income surge

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Infinity Trust Mortgage Bank Plc, Abuja-headquartered mortgage lender, posted a stellar half year performance, as profit advanced to its highest level in seven years since 2013, driven by surge in interest income.

Figures from the lender’s half-year earnings scorecard, showed profit after tax increased to N211 million between January and June 2019, indicating some 50 percent increase over N141 million realized in the previous comparable period.

Analysis of the company’s bottom-line figures between 2013 and 2019, revealed that profit surged 219 percent from N66 million to N211 million, within the seven-year period, with compound profit growth rate settling at 18 percent.

Infinity Trust Mortgage Bank’s interest income rose to a record high of N497 million in the first six months of 2019, N161 million or 48 percent higher than N336 million posted a year earlier.

All the four constituents of the lender’s interest income except estate mortgage income, trended northwards in the review period.

Interest earned on other mortgage loans and advances to customers, which accounted for 46 percent share in interest income, spiked 52 percent from N152 million to N231 million.

While interest on – national housing funds loan and treasury operations & placement advanced 53 percent and 74 percent respectively to N29 million and N178 million, estate mortgage income contracted 7 percent.

Interest expense grew more than double to N90 million in the review period, a sharp rise of 105 percent over N44million posted in the previous similar period.

The spike in interest expense was fuelled by debt issued and other borrowed funds, its major component with 64 percent share, which appreciated 123 percent in the first six months of 2019.

Interest paid on customer deposits nearly doubled to N32 million from N17 million in the prior period.

Fees & commission income realized by the Abuja-headed bank nearly doubled its N27 million last year figure, settling at N53 million in half year 2019, buoyed by spike in credit related fees & commission.

Credit related fees & commission, which accounted for 68 percent in total fees & commission income, jumped 125 percent from N15 million to N36 million, with commission on turnover, facilities management fees & other commission grew 67 percent, 71 percent and 46 percent respectively.

The bank’s other operating income climbed 21 percent higher to N117 million, on the back of a triple-digit growth of 108 percent in rental income, while the largest component, investment income, dipped 17 percent in face of the low interest environment.

The mortgage bank earmarked N4.3 million as credit loss expense in the first six months of 2019; peradventure customers fail to repay money owed, compared to N2.1 million in the previous similar period.

Shares of the bank have remained flat at N1.39 for the past two months, down 2.1 percent year-to-date, outpacing the Lagos bourse that has lost 5.8 percent year-long.

Infinity Trust Mortgage Bank Plc offers a wide range of mortgage banking services including mortgage lending and lines of credit.

 

Israel Odubola 



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