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Company Results

Infinity Trust Mortgage Bank Plc suffers 2.21% drop in Q3 revenues

Q3 2020 financial statement, the bank experienced a plunge in revenue in the period under review.

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Infinity Mortgage Bank release 9-month financial result, posts 32.6% increase in profit   

The revenue of Infinity Trust Mortgage Bank Plc plunged by 2.21%, from N326.2 million in Q3 2019 to N319.0 million in Q3 2020; while its Profit after Tax surged by 42.98% to N117.24 million in Q3 2020 in the period under review, according to its Q3 2020 financial statement.

Further analysis of the results indicate that the decline in revenue is due to a 6.9% decrease in Interest and similar income, as well as a 25.8% net fees and commission income. This is understandable considering that companies have recorded decreased revenues, largely due to the COVID-19 pandemic, which has affected the income of both individuals and businesses worldwide. 

READ: These 5 stocks are trading at the lowest price ever on the NSE

The reported Profit before Tax grew by 41.98% to N122.2 million from N83.9 million in the period under review. This can be attributed to an increase in other operating income, which increased by 82.67% to N45.28 million in the same period. This also moderated the negative effects of the deficit recorded on Interest and similar income, and Net fees and commission income on the total revenues.

Infinity Trust Mortgage Bank Plc was incorporated on 28th, January 2002, as Infinity Trust Savings & Loans Limited. However, it commenced business operations in Abuja, in 2003As part of its strategic turn-around, the bank was converted to a Public Limited Liability Company on 25th, January 2013, and had to change its name to Infinity Trust Mortgage Bank Plc. 

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READ: United Capital result points to how banks could make money in this pandemic

In 2014, it became a National Mortgage Bank. Currently, the bank has equity shareholding in the Nigeria Mortgage Refinance Company (NMRC). 

Following the conversion of the company to a Public Limited Liability Company on 25th January 2013, the company’s shares were listed on the floor of the NSE on 11th December 2013. The shares currently trade at N1.36 per unit. The highest price for a unit of share in 52 weeks is N1.52 and the lowest is N1.26.

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A total of 20,247 units were sold in the last seven days trades. Shares outstanding is 4,170,455,720 units and its market capitalization as at close of business on Monday, 5th October 2020 stood at N5.67 billion. 

READ: Zenith Bank blows past Access Bank as customer deposits cross N4 trillion

The Earnings Per Share (EPS) of the company surged by 30.28% in Q3 2020 from 7.86 kobo in Q3 2019 to 10.24 kobo in the period under consideration. A 42.98% increase in distributable profits made this possible.

Infinity Trust Mortgage Bank Plc was recently on-boarded as a participating Financial Institution by the Development Bank of Nigeria (DBN)This on-boarding enabled the company to access about N2.7 billion to lend its customers as mortgages.

Commenting on the development, the MD/CEO of the company, Mr. Olabanjo Obaleye said the partnership is key, as it strengthens the company’s ability to offer different kinds of loan products to individuals and MSMEs that constitute more than 90% of enterprises in the country

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The MD/CEO also admitted that the partnership with the DBN will further foster mortgage penetration in the country. “It will help us reach many more customers that are self-employed and those in the MSME space that want to purchase commercial properties like shop and offices. This will also improve financial inclusion for mortgage products. It will further broaden the mortgage penetration depth in the Nigerian market,” he said.

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Abbey Mortgage Bank Plc operates in the same sub-sector as Infinity Trust Mortgage Bank Plc – Mortgage Carriers, Brokers, its share price is N1.05. The highest price for a unit of share in 52 weeks was N1.05 and the lowest N1.00. A total of 15,047 units was sold in the last seven days trades. Shares outstanding is 6,461,538,462 units and its market capitalization is N6.78 billion.

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Company Results

SET Plc recorded N14.4m post-tax loss in Q3 2020

Secure Electronic Technology Plc (SET Plc) recorded a post-tax loss of N14.4 million in Q3 2020.

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Gaming

Secure Electronic Technology Plc (SET Plc) recorded a post-tax loss of N14.4M in Q3 2020, triggered by a high dealer’s commission. 

A cursory analysis of the Q3 2020 results of Secure Electronic Technology Plc (SET Plc) indicates that the Q3 2020 post-tax loss reduced by 33.7% from N21.7M in the same quarter last year. 

READ: For SET Plc, failure in lottery shifts focus to online gaming

Highlights 

  • Revenue increased by 1.0% 
  • Prizes/winnings increased by 0.52% 
  • Dealers commission increased by 3.42%    
  • Net income decreased by 14.71% 
  • Administrative expenses decreased by 21.21%  
  • Operating loss decreased by 34.62% 
  • Financial charges increased by 68.23% 

READ: MTN: Data subscriptions triggered surge in Q2 2020 Revenues

What you should know

  • A cursory analysis of the latest results of the company reveals that revenues generated from lottery sales and gaming products increased by 1% in Q3 2020 relative to Q3 2019despite COVID-19 pandemic disruptions that have affected revenues of most businesses worldwide.
  • YoY, revenue decreased by 2.15% from N3.18B in 2019 (9-months) relative to N3.11B in 2020 (9-months) – indicating that COVID-19 might have impacted the activities of the company, when considered on a yearly basis.   
  • While the company was able to increase revenues by 1%, reduce its operating loss by 34.62%, and reduce its administrative expenses by 21.21%; high dealers commission and administrative expenses as well as finance charges which increased by 68.23% contributed to the post-tax loss recorded.  
  • Dealers commission and administrative expenses constitute a drag on the company’s profitability. Dealer’s commission was 36.12% of revenues in the period under consideration while prizes/winnings were 60.35%. Administrative expenses was 137.16% of net income in the quarter under consideration. 
  • The post-tax loss is an indication that there was no distributable profit. Thus, the Earnings Per Share (EPS) of the company would be a deficit; so that Q3 2020 EPS was –0.26 kobo.  

READ: Infinity Trust Mortgage Bank Plc suffers 2.21% drop in Q3 revenues

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The shares currently trade at N0.20 per unit. The highest price for a unit of share in 52 weeks was N0.20 and the lowest N0.20, indicating that the share price of the company has been stable. A total of 20,212 units was sold in the last seven days trades. Shares outstanding is 5.63 billion units and its market capitalization as at close of business Friday 16th October 2020 was N1.13 billion. 

Interlinked Technologies Plc operates in the same sub-sector as SET Plc – SpecialityIts share price is N2.91. The highest price for a unit of share in 52 weeks was N2.91 and the lowest N2.91 – indicating that the share price of the company has been stable. A total of 141,020 units was sold in the last seven days trades. Shares outstanding is 236.7 million units and its market capitalization as at close of business Friday 16th October 2020 was N688.80 million 

READ: Pharmaceuticals: Pharma-Deko’s revenue declines by 49.4% in H1 2020

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Background

Secure Electronic Technology Plc (SET Plc), formerly known as National Sports Lottery was incorporated in 2000 with an exclusive 30-year license granted by the FG to operate the National Lottery in Nigeria.

SET Plc started out as a gaming/lottery company. While online gaming remains a major part of its operationsAside from lottery and gaming, the company now explores other business areas within the ambit of technology and data management. 

READ: SAHCO suffers 92% decline in profit, as travel restrictions bite harder

Today, the company is involved in the vending of airtime, provision of card payment solutions, trivia promo syndication, provision of central database and information processing services, as well as treasury/asset management services 

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Company Results

Presco Plc projects N24.53 billion turnover in Q4 2020

Presco’s forecast is coming amid the negative economic impacts of the coronavirus pandemic.

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Presco Plc has projected an 82.03% rise in Profit after Tax to N6.99 billion in Q4 2020, up from N3.84 billion in Q4 2019. Also, its projected turnover of N24.53 billion indicates a 24.39% increase when compared to the N19.72 billion made in Q4 2019.

The Earnings Forecast sent to the Nigerian Stock Exchange (NSE) today, estimated the Gross Profit to be N14.18 billion and the Profit before Tax to be N9.13 billion.

This forecast is coming amid the negative economic impacts of the coronavirus pandemic. It is generally expected that the firm should have downgraded their earnings and profitability forecasts, but renewed optimism based on the reopening of the economy and growing demands for consumer goods have been factors that influenced the projections.

Backstory

Presco Plc had earlier held its Annual General Meeting, with the unaudited accounts for the tQ3 2020 ended September 30, 2020, were deliberated upon among other resolutions.

What you should know

Presco Plc is a fully-integrated agro-industrial establishment with oil palm plantations, palm oil mill, palm kernel crushing plant, and vegetable oil refining plant. They produce specialty oil and fats.

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Company Results

Regency Alliance Insurance Plc forecast N730.72 million profit for Q4 2020

Regency Alliance Insurance Plc released its earnings forecast for Q4 2020, with a projected profit after tax of N730.72 million.  

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Regency Alliance dividend

Regency Alliance Insurance Plc, a major player in Nigeria’s insurance industry has released its earnings forecast for Q4 2020 to the Nigerian Stock Exchange (NSE), with a profit after tax of N730.72 million 

While awaiting its Q3 2020 financials, the projected profit after tax figures is up by 32.75%, from N550.46 million recorded in Q2 2020 to a projected figure of N730.72 million for the last quarter of the year. 

READ: Nigeria’s GDP grew by 2.28% in Q3 2019, as border closure hits trade sector

Other key projected financial metrics which recorded an increase are: 

  • Profit before tax recorded a 28.3% increase from N670.11 million recorded in Q2 2020 to a projected sum of N859.67 million. 
  • Taxation grew by 7.8% from N119.65million recorded in Q2 2020 to a projected sum of N128.95 million 

READ: COVID-19 boosts Fidson Healthcare Plc’s Q2 2020 performance

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Other key figures in the forecast for Q4 2020 include; the projected sums of N4.28 billion for Gross premium earned, N2.82 billion for Net premium, N855.9 million for Net claims incurred, N928.65 million for Underwriting/Management Expenses, and N487.3 million for Net cash generated from operating activities. 

READ: Credit to households increases in Q2 2020 – CBN

Backstory 

Regency Alliance Insurance Plc had earlier announced 28th October 2020, as the date for its board meeting, to consider its Q3 2020 financials for the period ended 30th September 2020. In lieu of this, its closed period will be from October 13, 2020. 

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On this basis, the projected key financial metrics were compared with the last reported financials in Q2 2020.  

READ: Non-Performing loans in Nigerian Banks rise to N1.21 trillion in H1 2020

What this means 

The increase in projected Q4 2020 might be connected to the drive to meet up with recapitalization requirements for insurance firms in Nigeria. Recall that Nairametrics had earlier reported on how the aforementioned firm had planned to raise more capital through various strategic means including issuing a N10 billion additional ordinary shares at N0.50K each. 

READ: PZ Cussons Nigeria drops to 10 year low this week

Theoretically, the projected increase in profit is realizable when a number of factors such as optimization of underwriting skills, lower claims ratio, higher gross premium, and efficient optimization of technology, amongst others are satisfied. 

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READ: See excuses these companies are giving ahead of late filing 2018 results

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What you should know

Regency Alliance Insurance Plc is an insurance company in Nigeria with its headquarters in Lagos. It is licensed to cover all classes of non-life insurance. The company also has business interests in property investments in the form of real estate development and leasing, finance leasing, retail and microfinance banking, and vehicle tracking and fleet management services.  

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