Infinity Mortgage Trust Bank Plc’s half yearly earnings exceeded expectations as net income surged on the back of improvement in income on loans and advances while the lender’s key strategic drive in bolstering product offering to small business has gained momentum.
For the first six months through June 2021, Infinity Trust Mortgage’s net income surged by 99.36 percent to N300.10 million from N150.53 million as at June 2020.
The growth at the bottom line is mainly driven by a 24.57 percent increase in other mortgage loans and advances to N418.77 million as the bank continues to extend credit facilities to customers that enables them to become homeowners.
Interest and similar income were up 28.46 percent to N601.44 million in the period under review from N468.17 million the previous year while gross earnings were up 35.05 percent to N785.47 million in June 2021 from N581.76 million the previous year.
Nigeria, Africa’s largest economy, is struggling with severe shortages of housing that validates the deteriorating macroeconomic environment as over 50 percent of a population of 200 million live on less than $1.90 a day.
Somadina Anene, vice president of the Abuja Chamber of Commerce and Industry (ACCI), said at a press conference in Abuja that the country’s housing deficit that stands at 17 million could jump to 25 million by 2025 if the government fails to formulate policies that will attract investment into the real estate.
“How do we revamp the economy? By encouraging more investments in the real estate and construction industry because we know infrastructure is key to economic development in the sense that it will drive economic growth, it will provide more jobs, it will even reduce crime and social vices in any economy. So, that is why we have taken that as the theme for this year,” said Anene
Aside from rising unemployment and inflationary pressures undermining consumer spending, the unexpected advent of the coronavirus pandemic dealt a great blow to the housing/real estate industry.
Nigeria needs to spend about $3 trillion over the space of 30 years in order to bridge the country’s infrastructural gap. This is according to a recent report released by Moody’s Investors Services, a leading global risk assessment firm.
The International Monetary Fund has estimated additional spending of 18 percentage points of Gross Domestic Product by 2030 for Nigeria to achieve Sustainable Development Goals.
To help the government surmount these challenges, Infinity Mortgage has secured N2.70 billion facility from Development Bank of Nigeria for on-lending to its customers.
“Shelter is one of the basic human needs, this is why we are passionate about providing needed mortgage loan to deserving Nigerians particularly those in the MSMEs sector to purchase properties, this will further broaden the mortgage penetration depth in the Nigerian market, as we speak we have simplified our processes in such a way that a mortgage loan can be disbursed within three days to an individual, giving that the applicant meets all the mandatory requirements,” said Olabanjo Obaleye, Managing Director/CEO of the Bank.