Infinity Trust Mortgage Bank Plc reported its 2024 third-quarter results showing pre-tax profits grew by 106.99% year on year, reaching N584.406 million.
This took the nine-month pre-tax profits to N1.333 billion versus N814 million in the same period last year.
Key highlights (2024 Q3 vs. 2023 Q3):
- Turnover: N1.265 billion +84.41% YoY
- Interest Income: N912.634 million +46.95% YoY
- Interest Expense: N319.771 million +91.89% YoY
- Net interest income: N592.862 million +30.47% YoY
- Net fees and commission income: N27.352 million +22.91% YoY.
- Total operating income: N945.521 million +82.01% YoY
- Total operating expenses: N316.004 million +34.27% YoY
- Profit for the period: N584.170 million +110.41% YoY
- Earnings per share: N0.55 +123.71% YoY
- Loans and advances to customers N16.888 billion +9.93%.
- Cash and balances with Central Bank: N127.828 million +19.13%
- Total Assets N24.032 billion +16.35%.
- Due to customers: N5.921 billion +34.14%.
- Total Liabilities: N16.835 billion +31.62%
Commentary:
Infinity Mortgage Bank Plc’s Q3 2024 results highlight impressive growth in both revenue and profitability, driving a strong performance for the nine-month period.
In Q3 2024, Infinity Mortgage Bank Plc recorded a post-tax profit of N584.17 million. Combined with N718.47 million from the earlier quarters, this pushed the nine-month post-tax profit to N1.303 billion, exceeding the full-year 2023 post-tax profit by over 30%.
The 110% growth in post-tax profit was fuelled by strong turnover, which reached N1.265 billion in Q3 2024, bringing the nine-month total to N3.059 billion.
- Top-Line Performance: Turnover was primarily driven by a substantial rise in interest income, which accounted for 72% of the total turnover.
- Mortgage Contribution to Interest Income: The share of interest income from mortgage loans and advances to customers declined by 3.16% in Q3, contributing 75% of total interest income for the quarter. This lowered the nine-month contribution by 0.47% to 76.03%, compared to the same period in 2023.
- Interest Expenses: Interest expenses in Q3 accounted for 35% of interest income. While this appears modest, it reflects an increase from 29% in H1 2024 and 27% for the first nine months of 2023.
- Balance Sheet Health: Total assets grew by 16.35% to N24.032 billion, driven primarily by loans and advances, which comprised over 71% of total assets.
Exceeding prior-year profits early could spark positive sentiment around the stock, potentially increasing demand and boosting its market value in the short term.
In 2023, the stock delivered a 372% year-to-date (YtD) gain, ranking among the top performers on the NGX. The bullish momentum has carried into 2024, with the stock posting a 16.7% YtD gain so far.
