Surmounting two recessions and operating in a tough operating environment, Infinity Trust Mortgage Bank has cling onto profit as it continues to pave the way for customers to access loans so that they become homeowners.
For the first six months through June 2023, Infinity Mortgage Trust Bank Plc (ITMB)’s net income spiked by 57.74 percent to N503.94 million from N323.13 million as at June 2022.
Interest income and similar charges were up 34.84 percent to N1.06 billion in the period from N786.09 million the previous year.
A breakdown of the revenue figures for other mortgages, loans and advances to customers increased by 45.54 percent to N805.44 million as at June 2023.
The impressive performance shows the strength and resilience of the Bank’s ambitious strategy as it maintained a solid balance sheet as well as disciplined governance and risk management approach.
Of course, the Bank has been disbursing mortgage loans to customers even amid affordability challenges.
Loans and advances stood at N14.45 billion as at March 2023, which is 24.46 percent higher than 2022’s N11.61 billion.
While ITMB has a steady earnings growth, it appears investors do not have confidence in its long term prospects as they have not been buying mortgage stocks even as there has been an equity rally.
ITMB has a negative -3.94 percent; Abbey Mortgage Bank Plc, -19.49 percent, both underperformed the NGASI index of 22.81 percent.
Of course, the mortgage industry is beleaguered with challenges which hindered it from being a viable investment for investors who crave for value or growth stocks that magnifies their portfolio.
First, the industry has not recovered from non-performing loan challenges due to poor economic performance induced by COVID-19 as sector players had a high percentage of their income wiped out by the rising cost of household products due to inflation.
Rising interest rates due to spiraling inflation rate balloons mortgage rates which makes houses inaccessible to Nigerians. That crimps the earnings growth potentials of firms.
