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LivingTrust Mortgage Bank Plc full year profit has risen even amid rising interest rate and inflation, as the lender continues to extend credit to customers who seek to own a home.
According to the 2022 audited financial statement seen by MoneyCentral, LivingTrust Mortgage Bank’s net income was up 82.89 percent to N909.15 million from N497.04 million as at December 2021.
Interest income and similar charges rose by 64.60 percent to N1.86 billion in December 2022 from N1.13 billion the previous year.
A breakdown of interest income shows interest income from loans and advances from customers surged by 106.71 percent to N1.08 billion as at December 2022.
This stellar performance is coming amid rising mortgage rates brought on by interest rates increase by the central bank that seeks to tackle soaring inflation as the cost of living squeezes households.
Spiraling interest or mortgage rates shrinks homeownership as people will be paying more on interest on mortgages to service existing loans, while accommodation becomes inaccessible to customers.
While Nigeria’s inflation rate surprisingly eased to 21.34 percent in December 2022 despite the Christmas and New Year festivities, dropping from 21.47 percent recorded in November, it is still the highest in 17 years.
The Central Bank of Nigeria (CBN) has raised the Monetary Policy Rate to 17.5 percent from 16.50 percent.
LivingTrust Mortgage Bank also operates in an environment beset by high unemployment rate and the outdated Land Use Act.
Nigeria’s unemployment rate as of the second quarter of 2020 is 27.1% indicating that about 21,764,614 (21.7 million) Nigerians remain unemployed.
Nigeria’s unemployment and underemployment rate (28.6%) is a combined 55.7%. This means the total number of Nigerians who are unemployed or underemployed as at 2020 Q2.