LivingTrust Mortgage Bank Plc has reported a notable performance for the year ending December 31, 2025, with a N1.01 billion profit after tax, reflecting an 18.3% increase from the previous year’s N854.5 million.
The released unaudited financial statements reveal a healthy growth trajectory in both revenue and profitability despite rising operating costs and credit provisioning.
Key Highlights:
- Gross Earnings: N6.52 billion, up 74.9% year-on-year (YoY)
- Interest Income: N4.49 billion, up 55% YoY
- Profit After Tax: N1.01 billion, up 18.3% YoY
- Total Loans and Advances: N17.08 billion, up 21.7% YoY
- Impairment Losses: N2.72 million (compared to N692,047 in 2024)
What the numbers mean
The bank’s gross earnings rose sharply by 74.9% to N6.52 billion in 2025, a significant improvement from N3.73 billion in 2024.
The interest income from mortgage loans and term loans was a major contributor, with N4.49 billion earned from interest, marking a 55% increase from the previous year.
This jump is primarily attributed to the bank’s strategic focus on increasing its lending portfolio, particularly in mortgages and term loans.
The bank’s net interest income also saw an impressive 114% increase from N357.87 million in 2024 to N766.94 million in 2025, demonstrating strong income generation from its interest-earning assets.
However, the impairment losses have increased significantly, rising to N2.72 million in 2025 from N692,047 in 2024. This increase in impairment charges suggests that the bank may be facing higher credit risk as it expands its loan book.
The higher provisioning is a prudent move to safeguard against potential defaults, especially considering the substantial growth in the mortgage and term loans segments.
While the impairment losses are still relatively low, this uptick highlights the importance of closely monitoring asset quality as the loan portfolio continues to grow.
Profitability and cost management
Despite higher impairment charges and rising operating expenses, the bank was able to achieve a 18.3% increase in profit after tax, from N854.5 million in 2024 to N1.01 billion in 2025.
This was driven by strong revenue growth and the bank’s ability to manage its core business operations efficiently.
Operating expenses increased by about 18.9% to N1.71 billion, driven by higher personnel costs, depreciation, and amortization.
However, given the growth in income, these increases in costs appear manageable, and the bank has maintained good control over its cost structure relative to its growing revenue base.
Asset growth and capital position
The bank’s total assets grew significantly by 36.3% from N24.05 billion in 2024 to N32.74 billion in 2025.
This growth was primarily driven by the increase in loans and advances, which rose by N3.07 billion to N17.08 billion, and a large increase in due from banks, which more than doubled to N12.02 billion.
The equity of the bank remained stable at N5.05 billion, supported by retained earnings, which indicates that the bank is maintaining a strong capital base as it expands. The rise in assets, combined with stable equity, provides a solid foundation for future growth, though the bank will need to continue managing its capital efficiently as it grows.
What you need to know
The bank’s free float remains a concern, with only 10.93% of shares available for public trading. However, this is not an immediate issue since the value of the free float complies with the Nigerian Stock Exchange’s requirements for companies listed on the Growth Board.
Outlook for 2026
Looking ahead, LivingTrust Mortgage Bank appears well-positioned for further growth in 2026.
With its expanding loan portfolio, particularly in the mortgage and term loan segments, the bank is tapping into lucrative areas of the financial market.
However, it must remain vigilant about asset quality and credit risks as its loan book continues to grow.
Additionally, improving cost efficiency and addressing the free float issue will be key to sustaining long-term growth.
If the bank can manage these areas effectively, it should continue its strong performance in the coming years.
Market performance
While the stock did not perform well in 2025, closing at N3.45 with a YTD loss of 21%, it has been impressive in 2026, showing a YTD gain of 55.4%. Yesterday, following the release of the 2025 unaudited results, the stock gained 9.8% intraday, closing at N5.36, up from its previous closing price of N4.88
Investors might be right to expect an increase in dividends following its dividend trend. With EPS growing by 18.3% in 2025, the bank is likely to raise its payout.
This would align with the bank’s consistent approach of rewarding shareholders while reflecting its solid performance. In 2024, it increased the dividend to 8 kobo from 3 kobo in 2023
This could help sustain the rally observed in early 2026 throughout the remainder of the year.
