Infinity Trust Mortgage Bank (ITMB) has recorded N847.1m profit before tax in 2022, representing a 29 percent increase from N656.9m posted in the previous year.
The bank said despite the high-interest rates in the country, its financial performance had remained satisfactory.
According to findings by BusinessDay, ITMB was also able to reduce its non-performing loans from 5.8 percent in the previous year to 3.2 percent despite the harsh macroeconomic conditions.
Further findings showed the bank achieved a 28 percent increase in profit before taxation from N847.1 million as against the N656.9 million achieved in 2021.
Speaking at the company’s 17th Annual General Meeting (AGM) in Abuja, Adeyinka Bibilari, chairman, Board of Directors, ITMB, said the bank performed well and has consistently been declaring unbroken profits for the past 16 years.
“Despite the growing cost of doing business, we were able to improve operational efficiency by reducing the Bank’s cost to income from 55 percent in 2021 to 49.6 percent in 2022; With a turnover of over N2.096billion, profit after tax stood at N633.4million which represents a 16.8 percent growth over 2021 PAT of N542.4 million,” he said.
Bibilari said the Bank disbursed a total of N5.1 billion in loans in 2022 and closed the year with loan assets valued at N12.4 billion however its total expenses increased by 15 percent due to rising inflation induced by instability in the Value of Naira and increase in debt funding.
“Our balance sheet expanded by 3.4 percent , from N16.2 billion in 2021 to N16.7 billion in 2022; while shareholders’ funds grew by 5.6 percent which shows the strength of Bank in implementing our strategy to meet its set corporate objectives,” he said.
ITMB’s debit on-lending and refinancing activities witnessed a growth of 13.8 percent from N4.7 billion in 2021 to N5.4 billion in 2022 due to investor confidence in the Bank.
On the back of this performance, the chairman proposed a dividend of 6k per share which is 20 percent higher than the 5k paid in the previous year.
Sunday Olumorin, managing director, ITMB said that during the review period, the Bank was rated low by CBN composite rating and retained its entity and servicer ratings of Bbb+ and SR3 respectively (Agusto & Co.).
He explained that the ratings showcased the Bank’s strong capitalization, adequate liquidity and funding profile, qualified management team, satisfactory asset quality, efficient risk management processes, succession planning at the leadership level, ample business continuity framework, sound collection and recovery procedures.
“With a Capital Adequacy Ratio of 44 percent and Liquidity Ratio of 31.3 percent, the Bank is well positioned to take advantage of profitable business opportunities and meet its maturing obligations,” Olumorin said regarding the bank’s outlook.
Highlighting challenges in tackling the accommodation shortage, he said the acquisition of houses through mortgages still remains a major challenge due to various reasons including affordability challenges, difficulty in accessing land and titles to land, Inadequate legal framework, Inadequate incentives, etc.