LivingTrust Mortgage Bank Plc posted a profit after tax of N533.3 million in the 9 months period of 2021, representing a 372% surge compared to N112.92 million recorded in the corresponding period of 2020.
This is according to the recently released interim financial statement for the period ended 30th September 2021, obtained from the website of the Nigerian Exchange Group (NGX).
The growth achieved in the review period was largely due to stellar performance recorded particularly in the third quarter, where the net profit increased by 215% to N225.04 million compared to N71.4 million posted in Q3 2020.
- Gross earnings jumped by 165% from N423.1 million recorded in 9 months 2020 to N1.12 billion in 2021.
- Fee and commission also rose by 176% to N123.9 million between January and September 2021, this compares to N44.97 million earned in the corresponding period of the previous year.
- In the same vein, personnel expenses increased by 57% to stand at N199.9 million in 2021 as against N127.3 million spent in the 9 months period of 2020.
- Earnings per share also increased by 363% to 10.47 kobo in the review period.
- Returns on asset (ROA) stood at 5.1% as of 30th September 2021.
A look at the balance sheet also shows significant increase in the total assets, characterised by an 84.2% increase in loans and advances to customers. Specifically, loans to customers increased from N4.08 billion as of the end of 2020 to N7.51 billion at the end of September 2021. This indicates an additional net loan of N3.43 billion to customers between January and September 2021.
Meanwhile, due to dividend pay-out for financial year ended 2020, shareholders equity reduced marginally by 1.8% from N2.78 billion recorded as of December 2020 to N2.73 billion at the end of Q3 2021.
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How they fare in the industry
The mortgage industry printed impressive results in the third quarter of the year and the 9-month period, all recording growth in top and bottom line. An analysis of the three listed mortgage banks on the NGX, shows that they printed an aggregate net profit of N1.45 billion profit in the 9-month period of 2021.
LivingTrust Mortgage Bank recorded a 372% increase net profit in contrast to the 52% increase recorded by Infinity Trust Mortgage Bank, while Abbey Mortgage Bank in the same period grew its profit by 212% from a loss of N423.1 million recorded in the corresponding period of 2020.
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A look at the returns on asset shows that Livingtrust Mortgage Bank’s ROA stood at 5.1% in the review period, followed by Infinity Trust Mortgage Bank with 2.9% ROA while Abbey Mortgage Bank prints an ROA of 1.5%.
What you should know
The outstanding performance in the bank’s operation is driven by significant changes made after Cititrust Holdings Plc invested in the firm, changing its name to Livingtrust Mortgage Bank from Omoluabi Mortgage Bank in 2020.
In line with the strategic vision of new board and management, led Messrs Adebayo Jimoh and Adekunle Adewole respectively, the bank launched a new mobile app and website as part of its corporate transformation plan.
According to the bank, the introduction of the new mobile application and the corporate website were necessary due to the phenomenal growth it has achieved within a very short period and the need to adopt a multi-channel approach to service delivery for an enhanced customer experience.
It also shows that the bank aims at driving financial inclusion by rendering electronic services to its customers. This has resulted to significant growth in its customer base, especially in the MSME space. The bank has also deepened its existing relationship with FMBN, DBN, and NMRC.
In the 9-month period, LivingTrust Mortgage Bank also grew its mortgage portfolio by 16%, whilst adopting a cost leadership model, which reflected in the company’s bottom line in the period under review.
In addition, the bank’s ROE as at Q3 2021 was 19.51%, while the cost to income ratio was 43.87%. The implementation of a performance-driven adhocracy culture contributed significantly to bank’s impressive financial results.
Meanwhile, the bank’s shares closed at N0.8 on the floor of the Nigerian stock market.