LivingTrust Mortgage Bank’s profit crashes 76% despite stronger deposits

LivingTrust Mortgage Bank Plc has released its unaudited first half 2026 financial statement, reporting a pre-tax profit of N133.33 million for the six months ended June 30, 2026.

This represents a decline of 76% from N562.53 million recorded in the corresponding period of 2025.

For the half-year period under review, profit after tax fell to N110.36 million from N562.53 million in the prior-year period as higher funding costs and operating expenses weighed on earnings performance.

This is contained in the company’s financial statement disclosed on the Nigerian Exchange (NGX) on July 31, 2026.

Key Highlights

• Gross Earnings: N3.01 billion (Down 0.3% YoY from N3.02 billion)
• Operating Income: N1.13 billion (Down 21% YoY from N1.44 billion)
• Pre-tax Profit: N133.33 million (Down 76% YoY from N562.53 million)
• Profit After Tax: N110.36 million (Down 80% YoY from N562.53 million)
• Earnings Per Share: 2.21 kobo (Down 80% YoY from 11.25 kobo)
• Personnel Expenses: N467.2 million (Up YoY from N334.57 million)
• Treasury Bills-Interest Income: N102.18 million (Down 70.20% YoY from N342.78 million)

Driving the numbers

LivingTrust Mortgage Bank’s earnings performance was pressured by a sharp deterioration in net interest income.

• Interest income declined by 25% to N1.54 billion from N2.05 billion in the corresponding period of 2025, while interest expense increased by 19% to N1.88 billion from N1.58 billion. As a result, the bank recorded a net interest loss of N346.24 million compared with a net interest income of N463.62 million a year earlier.
• The decline in core lending profitability was partly offset by strong growth in non-interest income.
• Other operating income increased to N1.33 billion from N542.98 million, driven largely by income from placements with banks, which rose to N1.11 billion from N237.19 million. This helped cushion the impact of weaker net interest margins.
• Operating costs increased significantly during the period. Personnel expenses rose 40% to N467.23 million, while depreciation charges more than doubled to N91.85 million.
• Although other operating expenses declined to N360.21 million from N475.20 million, total operating expenses still increased by 13% to N983.45 million. The higher cost base contributed to the sharp decline in profitability.
• On the balance sheet, customer deposits expanded strongly to N28.20 billion from N22.74 billion at year-end 2025, reflecting growth in demand and time deposits.
• Loans and advances increased modestly to N17.34 billion from N16.96 billion, while cash and cash equivalents rose to N17.00 billion from N11.61 billion.

The bank also increased placements with banks and treasury bill investments, strengthening liquidity during the period.

Despite weaker earnings, shareholders’ funds improved to N5.38 billion from N5.28 billion at the start of the year, supported by retained profits generated during the reporting period.

Balance Sheet

Total External Debt: N2.10 billion (Flat compared with N2.10 billion at December 2025)

Total Assets: N36.93 billion (Up 15% from N32.21 billion at December 2025)

Cash Balance: N17.00 billion (Up 46% from N11.61 billion at December 2025)

Market Reaction

The financial statements disclose a share price of N3.42 as of June 30, 2026, compared with N4.81 in the corresponding period of 2025.

The share price closed at N3.80 on Friday, July 31, 2026, a 10.14% year-to-date increase from N3.45 it closed on December 31, 2025.

What you should know

The H1 2026 decline contrasts with a notable performance for the year ended December 31, 2025, where the company posted a N1.01 billion profit after tax.

• This reflects an 18.3% increase from the previous year’s N854.5 million.

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.