Infinity Trust Mortgage Bank Plc and LivingTrust Mortgage Bank Plc are two of the three listed mortgage banks under the Financial Services – Mortgage Carriers subsector of the Nigerian Exchange.
Both banks have released their unaudited full-year 2025 results for the period ended December 31, 2025, with Infinity Trust emerging ahead on revenue, profitability, and balance-sheet size.
However, the stock market tells a slightly different story.
LivingTrust’s shares have gained about 49% year-to-date, outperforming Infinity Trust’s 21% gain, despite Infinity Trust’s stronger financial performance.
This follows a weak 2025 for both stocks, when LivingTrust declined by 21%, while Infinity Trust ended the year flat.
Beyond headline financial results and share-price movements, the more important question for investors is which bank offers the more compelling investment case, and how would the 2025 full-year performance shape market performance and shareholder return in 2026.
First, let us look at how the banks have performed over time
A closer look at historical performance shows that the two banks have followed very different growth paths.
Over the past five years, Infinity Trust has delivered a consistent and steady earnings trajectory.
- Between 2020 and 2024, profit after tax grew at an average annual rate of about 29%, supported by gradual expansion in its mortgage loan book and improving operating efficiency.
- This steady growth culminated in a step-up in 2025, when profit after tax surged to N2.9 billion, accounting for 71% of the bank’s cumulative profit generated between 2020 and 2024.
- The increase was driven by strong growth in interest income, a significant expansion in mortgage loans, and a notable decline in impairment charges, suggesting improved loan quality despite rapid balance-sheet growth.
LivingTrust’s historical performance followed a different pattern, while the bank recorded a higher long-term growth rate, its earnings were less consistent.
- Profits peaked in 2022, declined in 2023, and recovered modestly in 2024.
- In 2025, LivingTrust reported profit after tax of N1.01 billion, representing an improvement from the previous year, but without the same scale of acceleration seen at Infinity Trust.
- Growth was supported by higher gross earnings and interest income.
These differences are also visible at the shareholder level.
- Infinity Trust’s earnings per share rose sharply in 2025, nearly doubling year-on-year.
- LivingTrust’s EPS growth, while positive over the long term, was more incremental in 2025.
Which bank is operationally stronger in core mortgage banking?
From an operational standpoint, focusing strictly on mortgage lending and interest income generation.
Infinity Trust appears to be the stronger operator.
- As of 2025, Infinity Trust’s mortgage loans stood at N30.6 billion, forming the dominant share of its earning assets and closely aligning with its core mandate as a mortgage bank.
- This expansion translated directly into earnings, with interest income rising to N5.53 billion, driven primarily by mortgage and term lending.
LivingTrust’s balance sheet reflects a more diversified but less mortgage-intensive structure.
- Total loans and advances stood at N17.1 billion in 2025, with mortgage loans of N8.5 billion forming a smaller share of assets.
- While LivingTrust recorded respectable growth in gross earnings, higher funding costs and a less concentrated mortgage book limited the earnings impact of its lending activities.
What the 2025 numbers signal for investors in 2026
Looking ahead to 2026, the divergence between the two banks becomes clearer when earnings quality and dividend sustainability are considered together.
Infinity Trust’s sharp improvement in 2025 earnings has strengthened its dividend capacity, reduced payout pressure, and provided greater flexibility to fund future mortgage growth.
- With profits and earnings per share now at higher levels, the bank appears better positioned to deliver more predictable shareholder returns, provided current operating trends are sustained.
LivingTrust’s growth metrics remain attractive, but earnings volatility and a smaller dividend base reduce visibility.
- While profitability improved in 2025, the absence of a clear earnings step-up suggests that shareholder returns will remain more sensitive to earnings stability.
Dividend history and what to expect
Both banks have paid dividends consistently over the past five years, though with very different payout profiles.
Infinity Trust’s payout ratio typically ranged between 17% and 30%.
LivingTrust’s payout ratio, by contrast, has fluctuated more widely, ranging from 6% to 53%, in line with swings in profitability.
Neither bank has declared dividends for the 2025 financial year.
However, based on earnings per share growth and historical payout behaviour, clear expectations can be formed.
- For Infinity Trust, a dividend of between 25 kobo and 30 kobo for FY 2025 would be consistent with the sharp rise in earnings.
A payout below 25 kobo would be difficult to justify given the scale of earnings growth, while a dividend above 30 kobo would suggest a shift toward a more aggressive payout policy.
- For LivingTrust, a dividend between 8 kobo and 10 kobo appears more realistic. A flat 8 kobo would reflect caution and earnings stabilization, while a 9–10 kobo payout would signal measured confidence without overstretching earnings capacity
Which bank offers the most compelling investment case?
At current prices, investors are paying about N12 for every N1 of earnings at Infinity Trust, compared with around N25 for every N1 of earnings at LivingTrust.
This means LivingTrust is already priced for strong future growth, while Infinity Trust still trades at a relatively modest valuation.
With Infinity Trust recording a clear earnings inflexion in 2025 and delivering steady EPS growth over time, continued profit expansion in 2026 could make its current valuation look increasingly attractive. The lower entry price also provides a wider margin of safety if growth slows.
LivingTrust, on the other hand, offers higher historical growth rates but with more earnings volatility. At its current valuation, future returns will depend heavily on the bank sustaining strong and consistent earnings growth.
Overall, Infinity Trust presents the more compelling investment case, combining stronger earnings momentum with a lower valuation.
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