Mortgage banks’ net interest income surges 40% on rate hike

The net interest income of three listed mortgage banks surged by 4o.4 percent to N12.8 billion in nine months of 2024 from N8.5 billion on the back of increased interest rates by the central bank.

The mortgage banks are: Abbey Mortgage Bank, Infinity Mortgage Bank, and LivingTrust Mortgage Bank.

Mortgage banks specialise in making loans secured by mortgages for specific properties and offer various loan products at competitive rates. These loans and advances are mortgage loans, home improvement loans, personal loans, and commercial loans.

Further analysis revealed that the combined mortgage loans and advances under interest received from customers rose to N5.4 billion from N3.5 billion in nine months of 2023.

In terms of value, Abbey Mortgage Bank had the highest interest income of N8.09 billion followed by Infinity Mortgage Bank with N2.5 billion and LivingTrust Mortgage Bank (N2.2 billion) in nine months.

Abbey Mortgage Bank’s mortgage loans and advances rose to N1.9 billion from N1.1 billion, Infinity’s N1.9 billion from N1.3 billion, and LivingTrust’s stood at N1.6 billion.

Analysis of Individual firms

Abbey Mortgage Bank

Abbey Mortgage’s after-tax profit rose to N928.3 million in nine months of 2024 from N748.8 million in the same period last year.

Its revenue increased to N8.4 billion from N5.5 billion while its net interest income grew to N2.4 billion from N1.9 billion.

The mortgage bank’s total assets increased to N84.1 billion from N54.4 billion with a breakdown from financial investments securities at amortised cost which amounted to N50.9 billion from N6.2 billion while dues from banks and other financial institutions declined to N19.2 billion from N33.4 billion.

Abbey Mortgage is one of the primary mortgage institutions in Nigeria, with over 27 years of experience providing mortgages for both individuals and corporate organizations so you have come to the right place.

Read also: Three mortgage banks’ first-half earnings rise 54% to N1.7bn

Infinity Mortgage Bank

InfinityTrust Mortgage’s after-tax profit rose to N1.3 billion in the nine months of 2024 from N781.6 million in the same period last year.

Its revenue increased to N3.06 billion from N1.95 billion while its net interest and similar income grew to N1.7 billion from N1.3 billion.

The mortgage bank’s total assets increased to N24 billion from N20 billion with a breakdown from loans and advances to customers which amounted to N16.9 billion from N14.9 billion, and dues from banks grew to N1.9 billion from N1.3 billion.

InfinityTrust provides corporate and individual customers with mortgage banking, construction finance, and other financial services.

LivingTrust Mortgage Bank

LivingTrust Mortgage’s after-tax profit rose to N751.7 million in nine months of 2024 from N521.3 million in the same period last year.

Its revenue increased to N2.7 billion from N1.9 billion while its net interest income grew to N1.2 billion from N1.03 billion.

The mortgage bank’s total assets increased to N20.2 billion from N16.8 billion, with a breakdown of an increase in loans and advances to customers to N13.4 billion from N11.4 billion.

LivingTrust Mortgage, formerly Omoluabi Mortgage Bank Plc is a financial services institution in Nigeria that offers banking products and services for the retail, commercial, and corporate sectors.