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LivingTrust Mortgage Bank’s profit drops 18% in 2023

LivingTrust Mortgage Bank’s profit drops 18% in 2023

LivingTrust Mortgage Bank, a primary mortgage institution in Nigeria, has reported an 18 percent decline in its after-tax profit for 2023, according to the company’s latest unaudited financial statement.

The bank’s after-tax profit dropped to N745.80 million from N909.15 million in 2022.

Operating expenses rose by 23.3 percent to N1.14 billion from N928.22 million. Personnel expenses increased by 26.9 percent to N519.96 million, primarily driven by directors’ costs.

Read also: LivingTrust Mortgage Bank achieves another milestone, migrates to NSE’s Growth Board

Formerly known as Omoluabi Mortgage Bank Plc, the institution specialises in financing and offers products such as national housing fund mortgage loans, commercial mortgages, property acquisition loans, and loans for the business, construction, and trading sectors.

Last week, the mortgage bank revealed that it has successfully repaid an N950 million Micro, Small, and Medium Enterprises (MSMEs) grant to the Development Bank of Nigeria (DBN) two months ahead of the deadline.

Adekunle Adewole, managing director, said the achievement demonstrates LivingTrust’s dedication to excellence and maintaining the trust of its funding partners.

In March 2021, DBN disbursed the N950 million MSME fund to the bank for a tenor of 36 months, with the facility expected to lapse on March 1, 2024.

DBN noted that the bank’s performance in this area has offered a boost to the attainment of its core objective to reach MSMEs, who would have been unqualified for loans due to a lack of credit history.

The bank was appointed a partner bank for the development of the MSME sector by DBN on November 16, 2020, placing it among the few banks considered by DBN as possessing the requisite financial strength and governance structure to manage the MSME funds.

The bank’s financial statement also revealed that its other operating income decreased to N440.73 million in 2023 from N508.9 million in 2022. Fees and commission income dropped to N152.4 million from N164.91 million.

Despite the decline in profit, revenue saw a 14 percent increase to N2.90 billion from N2.54 billion. Basic earnings per share decreased to N14.92 from N18.18.

Net cash from operating activities recorded a positive N2.14 billion from a negative of N1.92 billion.

Net cash from investing activities showed a negative of N455.69 million compared to a negative of N172.54 million.

Net cash from financing activities recorded a negative N265.89 million, contrasting with a positive N319.35 million.

Cash and cash equivalents as of December 31, 2023, totalled N3.64 billion, an increase from N1.11 billion in 2022.