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Infinity Trust Mortgage Bank Declares N444.4m Profit Before Tax

Infinity Trust Mortgage Bank Declares N444.4m Profit Before Tax

By Adedayo Akinwale

Infinity Trust Mortgage Bank has declared a 21.2% percent increase in profit before tax from N366.8 million in 2018 to N444.4 million in 2019.

The Head, Corporate Communication and Brand Support, Mr. Akinwale Ishola, in a statement issued Friday, said that the bank also approved its 2019 annual reports and accounts, during the bank’s first-ever virtual Annual General Meeting (AGM), which was also the 14th AGM.

He said the meeting which took place at the bank’s Head Office, was held in adherence to social distancing rules and directives of the federal government, stressing that only 12 persons attended physically.

The Chairman of the Bank, Dr. Adeyinka Bibilari, was quoted in the statement as saying he was satisfied with the reports, stressing that they were a true reflection of the performance of the bank during the 2019 financial year.

He stated: “Weathering the challenging and hostile business environment in 2019, our bank achieved a profit before taxation (PBT) of N444.4 million. This means that the bank has remained consistently profitable for fourteen (14) straight years.

“Gross earnings increased by 37.6% from N1.005 billion in 2018 to N1.383 billion, sustaining its performance in the billion arena. Total operating expenses increased by 28.2% from N577 million in 2018 to N740 million in 2019. This culminated in a PBT of N444.4 million, an increase of 21.2% over last year‘s N366.8million. Though customer deposits reduced by N530.5 million or 21.5%, the core mandate of the bank witnessed three significant boost with loans growing from N3.802 billion in 2018 to N5.338 billion in 2019, an increase of 40%.

“Houses recognised as held for sale also witnessed a decrease of 50% from N63.8 million to N31.9 million over the period under review. Our secondary market operations characterised by our on lending and refinancing activities grew from N1.650 billion to N2.149 billion, an increase of 30.2%. Total assets also grew from N10.351 billion in 2018 to N10.644 billion in 2019, a growth of 3% while shareholders’ funds grew by 4% from N5.969 billion in 2018 to N6.202 billion in 2019.”

He therefore assured that the bank remains resolute in its commitment to be an industry leader in the banking sub sector through innovation, focus and excellent service delivery.

Bibilari stressed that the shareholders approved the appropriation of profits proposed by the Board of Directors and resolved to pay a dividend of 3.5 kobo per share, adding that it marked the 14th year that the bank had maintained profitability and consistently paid dividends to shareholders.

On his part, the Managing Director/CEO, Dr. Obaleye Olabanjo, said the bank’s performance in 2019 was as a result of the zeal and commitment towards excellence of the board, management and staff.

According to him, the bank’s key capital and liquidity figures remain well above the regulatory requirements, even after the reporting date of 31 December 2019. “Thanks to our very good capital and liquidity situation with an equity ratio well above the minimum legal requirement as well as its solid business policy. We have continued to develop products, and procedures designed to meet with the evolving business environment.”

Obaleye said despite the harsh economic realities, especially with the expected impact of Covid-19 pandemic, the bank would be focusing on the profitable side of the business this year.

He added: “Just as we were able to hold our first virtual Annual General Meeting with the aid of Technology, we would launch products and services that are technology driven which will enhance customer experience. We would be targeting expansion of our operating capacity, the optimisation and scaling of our internal processes and structures in order to reduce our overhead costs, as well as the generation of additional revenues through new business opportunities.

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