LivingTrust Mortgage Bank grew its profit after tax by 261.2% in the first quarter of 2021 to stand at N100.56 million. This was contained in its quarterly unaudited financial report, recently released on the Nigerian Stock Exchange website.
The profit after tax of the mortgage bank grew to N100.56 million in Q1 2021 from N27.84 million recorded in the corresponding period of 2020. This represents an increase of more than times 3 in a space of one year.
The bank’s stellar performance could be directly attributed to the investment by the pan-African financial services conglomerate, Cititrust Holdings Plc in 2020, which consequently changed the name from Omoluabi Mortgage Bank to LivingTrust Mortgage Bank.
Highlights
- Gross earnings during the period grew by 120.1% to stand at N251.8 million, compared to N114.4 million recorded in the comparable period of 2020.
- The company’s total assets increased by 38% from N6.29 billion recorded as of December 2020 to N8.69 billion as of March 2021.
- Loans to customers also witnessed double-figure growth, as it increased by 18% from N4.08 billion to N4.81 billion. This implies that LivingTrust Mortgage Bank gave loans up to N732.6 million to customers between January and March 2021.
- Profit margin moved to 40% from 24.3% recorded in Q1 2020. This also represents one of the best in the Mortgage banking subsector.
- Shareholders’ equity grew marginally by 3.8% to stand at N2.88 billion as of March 2021.
- LivingTrust Mortgage Bank, however, paid a total of N55.55 million as personnel expenses, as against N33.42 million spent in the corresponding period of 2020.
The company’s focus to deliver double-figure growth is evident in its investment of a sum of N35.04 million in the purchase of property, plant, and equipment during the period compared to the corresponding period of last year when nothing was allocated to this.
What you should know
LivingTrust Mortgage Bank Plc (formerly Omoluabi Mortgage Bank Plc) is a public limited liability company domiciled in Osun State, Nigeria.
- Cititrust Holdings Plc acquired 60% ownership of the bank last year, after which its name was changed from Omoluabi Mortgage Bank to LivingTrust Mortgage Bank Plc.
- Following the acquisition by Cititrust, a new Board and Management, led by a former Group Managing Director of Odua Investment Company Limited, Alhaji Adebayo Jimoh, and a seasoned banker, Mr Adekunle Adewole, were respectively put in place to drive the bank’s repositioning.
- LivingTrust recently applied to the Securities and Exchange Commission (SEC) to inject additional N3 billion equity into the bank. This is expected to improve the bank’s capacity to provide more innovation to its growing customer base and fund expansion projects.
- The holding company also recently announced its intention to transform the bank from a Regional to a National Mortgage Bank before the end of the second quarter of 2021.