Infinity Trust Mortgage Bank plc (ITMB) is tapping into the Nigeria’s fast growing real estate and housing sector as the company ended 2014 financial year with a 29.63 percent rise in profit.
For the year ended December 2014, Infinity Trust net income increased by 29.63 percent to N244.73 million from N188.79 million as of December 2013. Turnover increased by 27.04 percent to N743 million.
The real estate firm is giving loans to home seekers as interest income increased by 38.05 percent to N412.95 million as against N299.12 million in 2013, net interest income increased by 36.54 percent to N363.10 million.
Analysts say the stellar performance means the mortgage finance firm is tapping into the country’s rapid urbanisation and burgeoning middle-class that crave for accommodation.
Nigeria, Africa’s most populous country, has an estimated population of 170 million people, half of whom are urban dwellers.
According to the United Nations (UN), the size of the Nigerian population is forecast to grow by 113.4 million between 2010 and 2030 – an increase greater than the combined populations of Ghana, Kenya and Tanzania in 2010.
Indeed, the real estate and housing business in Nigeria is in growth spurt as its contributions to the economy were impressive.
The real estate sector now contributes up to 15 percent to the N80.22 trillion Nigeria GDP, the growth was driven by private residential investments and consumption spending on housing services.
Further analysis of the firm showed the growth in profitability was also as a result of 63.55 percent reduction in credit loss expense, which resulted in a 27.41 percent rise in net operating income to N689.48 million compared with N541.12 million in 2013.
Total assets reduced by 3.24 percent to N7.15 billion in 2014 from N7.39 billion in 2013.
Loan to customers reduced by 5.38 percent to N1.23 billion in 2014 as against N1.30 billion as of December 2013.
The firm has been consistently growing earnings since it got listed on the exchange in 2013. This trajectory means the bank is increasingly attractive to shareholders and investors.
It return on equity (ROE) increased to 4.40 percent in 2014 from 2.55 percent in 2013, which means shareholders resources are effectively used to generate higher profit.
In order to bridge or close the 17 million housing deficits besetting the country, the firm recently announced its preparedness to partner international funds for the development of mass housing units across the country.
The Abuja-based mortgage finance firm has succeeded in providing 10,000 housing units for residents of the Federal Capital Territory.
As part of its organic growth strategy, it has plans in the pipeline to spread its tentacles by opening branches in Port Harcourt and Kano. The bank’s share price closed at N1.45 on the floor of the exchange while market capitalisation was N6.04 billion.
BALA AUGIE
