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Infinity Trust’s Q3 net income rises 33.37%

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Infinity Trust Mortgage Bank (ITMB) plc is Nigeria’s pivotal mortgage bank as third quarter (Q3) 2014 net income surges 33.37 percent, analysis of its financial shows.

It must be noted that since the bank listed or joined the Nigerian Stock Exchange, it has been recording impressive results at both the top- and bottom-line levels. Analysts also say the shareholders of the bank should expect a higher return on their investment.

For the nine months through September 2014, Infinity Trust net income surged by 33.67 percent to N173.08 million from N129.48 million the same period of the corresponding year (Q3) 2013.

Top-line level results were also stellar as it turnover increased by 29.61 percent to N509.17 million in Q3 2014, as against N392.83 million the preceding year.

Net income, a measure of profitability and efficiency, moved to 34 percent in the review period from 32.9 percent the preceding year, while costs to income were down to 57.31 percent in 2014, as against 59.09 percent in 2013.

Analysts say Infinity’s consistent impressive performance was buoyed by the fact that the real estate giant is tapping into the Nigeria robust economy and her burgeoning middle-class that crave for accommodation.

Additionally, the rapid urbanisation and the 17 million housing deficits are positive prognosis that will drive mortgage business in Nigeria.

Infinity’s interest income rose by 32.56 percent to N277.94 million in Q3 2014, compared with N209.66 million as of Q3 2013.

While the bank’s diluted earnings per share increased by 33.87 percent to 4.15k in Q3 2014, from Q3 2013, total assets remained flat at N7.47 billion in the review period.

In order to bolster performance and its investment base, ITMB intends to float mortgage-backed securities and real estate investment trust as it is working assiduously to becoming a lead participant in the proposed Nigerian Mortgage Refinance Company and become a national mortgage bank by 2014.

It has also completed its Lagos office, which means the mortgage operator is aggressively expanding operations with a view to giving shareholders the required return on their investment.

The ITMB is expanding its loan portfolio as loans and advances to customers rose by 9.22 percent to N1.16 billion in Q3 2014, compared with N1.26 billion as of Q3 2013.

In the last rebasing of the country’s GDP, the real estate sector was a mjor contributor to the economy.

The real estate sector contributed 8.01 percent to the Nigerian economy, equivalent to N6.43 trillion ($40.9bn) of the total rebased GDP estimate of N80.22 trillion ($510bn).

The company’s share price closed at N1.52 on the floor of the Nigerian Stock Exchange, while market capitalisation was N6.33 billion.

BALA AUGIE