Infinity Trust Mortgage Bank Plc has announced a significant increase in its financial performance for the third quarter of 2024, reporting a 106.99% year-on-year growth in pre-tax profits to N584.41 million. This robust performance pushed the bank’s pre-tax profits for the nine-month period to N1.33 billion, a sharp rise from N814 million in the same period last year.
Key Financial Highlights (Q3 2024 vs. Q3 2023)
- Turnover: N1.27 billion (+84.41% YoY)
- Interest Income: N912.63 million (+46.95% YoY)
- Interest Expense: N319.77 million (+91.89% YoY)
- Net Interest Income: N592.86 million (+30.47% YoY)
- Net Fees and Commission Income: N27.35 million (+22.91% YoY)
- Total Operating Income: N945.52 million (+82.01% YoY)
- Total Operating Expenses: N316 million (+34.27% YoY)
- Profit for the Period: N584.17 million (+110.41% YoY)
- Earnings per Share: N0.55 (+123.71% YoY)
- Loans and Advances to Customers: N16.89 billion (+9.93% YoY)
- Total Assets: N24.03 billion (+16.35% YoY)
- Total Liabilities: N16.83 billion (+31.62% YoY)
Impressive Nine-Month Performance
The bank’s nine-month post-tax profit hit N1.30 billion, surpassing its full-year 2023 profit by more than 30%. This strong growth was primarily driven by a surge in turnover, which totaled N1.27 billion for Q3 2024, bringing the nine-month total to N3.06 billion. A key contributor was interest income, which constituted 72% of total turnover, although its share from mortgage loans declined slightly by 3.16%.
Despite the dip in mortgage loan contributions, interest expenses grew, making up 35% of interest income in Q3 2024, up from 27% for the first nine months of 2023. This reflects increased funding costs in the rising interest rate environment.
Balance Sheet Growth and Market Impact
Infinity Trust Mortgage Bank’s total assets expanded by 16.35% year-on-year to N24.03 billion, primarily driven by loans and advances to customers, which now make up 71% of total assets. The bank’s strong financials have generated positive investor sentiment, as evidenced by a 16.7% year-to-date (YtD) stock gain in 2024, continuing from its impressive 372% YtD gain in 2023.
Outlook
Infinity Trust Mortgage Bank’s ability to exceed last year’s profit within just nine months, coupled with its strong asset growth, positions it well for continued financial success. With the bullish momentum carrying into 2024, the stock is expected to maintain its appeal among investors, potentially driving up its market value in the near term.
