NAIJA BIZ

Exclusive: ITMB to grow earnings by N3.22 billion in four years

Infinity Trust Mortgage Bank Plc (ITMB) has disclosed that its earnings would increase by N3.22 billion from N776.9 million by the end of its 2022 financial year-end.

The Chief Executive Officer, Olabanjo Obaleye, who disclosed this in an exclusive interview with Nairametrics, explained that the gross earnings of the mortgage firm over the next four years were projected to increase from N776.92 million as at July 2019 to N1.77 billion, N2.5 billion in 2020, N3.50 billion in 2021, and N4 billion in 2022.

It projected growth of N1.75 billion in the profit before tax within the same period. The PBT, which stood at N245.9 billion as at end of July 2019, is expected to increase to N761.7 million by the end of 2019, N1.2 billion in 2020, N1.75 billion in 2021 and N2 billion by the end of 2022 financial year.

Obaleye is also optimistic that the company’s shareholders fund would grow by 105.4% in four years, as it is expected to increase from N5.84 billion to N6.13 billion, N9.5 billion, N10.5 billion, N12 billion within the same period.

When asked if the company has a plan of approaching the market to raise fund in 2020, considering the expected growth in the shareholders’ fund, the ITMB boss said, “We have not taken a decision on that for now. We will seek the consent of our shareholders when we get to that bridge.

“The bank is well-positioned to meet all its maturing obligations, growing business resulting in increasing expenditure combined with various expenditure control strategies, which resulted in cost to income remaining at 65% as in 2017, in 2018.”

He also said the bank was doing feasibility of operating a branch in Kaduna, to take advantage of the conducive mortgage environment created by the state government with the commencement of its Geographic Information System, which makes the creation of legal mortgage more efficient in driving refinance-able mortgage.

Obaleye had earlier noted that the dividend of 3k per share declared, the Mortgage Bank has done so for the fifth year running since becoming a listed company, and for the 13th consecutive time since 2006; thus being the only mortgage bank in Nigeria to achieve this feat.

Scoring another first amongst its peers in the industry, the bank also published its first sustainability report in compliance with the recently issued NSE (Nigerian Stock Exchange) guidelines, the Global Reporting Initiative (GRI) standards, and the UN Global Compact standards.

The report captured among other things the value-added statement, the stakeholders’ engagement report for 2018 capturing ITMB’s strategic responses, and the gender diversity/employee division report. The Bank maintained its entity rating of A3 in the short term, and Bbb+ (NG) in the long term; with a positive outlook and a service rating of SR3.

ITMB has maintained a robust asset base with total asset growing by 27% as a result of the growth in investments, risk assets, deposits, on-lending funds and shareholders’ funds, even as it runs an excellent enterprise risk management strategy.

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