Economy
Infinity Trust Mortgage Bank Eyes N4bn Earnings, 35 Kobo EPS, 40% ROE
By Adedapo Adesanya
The management of Infinity Trust Mortgage Bank Plc (ITMB) has expressed its intention to make its shareholders smile in the coming years, with the mapping out of some strategies to make this happen.
Some day ago, the company was at the Nigerian Stock Exchange (NSE) to present its Facts Behind The Figures to investors, members of the investing community as well as the media.
During the event covered by Business Post, Managing Director/CEO of Infinity Trust Mortgage Bank, Mr Onabanjo Obaleye, stated that the firm plans to double its investments in the next three years.
According to him, in the past years, ITMB has achieved some successes and would want to cover more grounds and spread its areas of operations.
In the past years, he said total assets in 2013 stood at N7.39 billion, but grew to N10.35 billion in 2018 and stood at N11.23 billion as at July 2019. He further said loan and advances in its first year as a public company stood at N1.31 billion, but rose to N3.8 billion in 2018 and N5.05 billion so far, while the investments have also grown to N2 billion as at the period calculated in 2019.
“We have moved our shareholders from 150 to 500 and we became a national mortgage bank,” he informed the investment community at the event.
Looking ahead, Mr Obaleye said the company seeks to build a strong brand presence in its market and have an improved customer confidence, efficient corporate governance, public and private housing initiatives among other drivers.
He expressed optimism that Infinity Trust Mortgage Bank plans to grow its total assets to N14.23 billion in 2019, N18.50 billion in 2020 and N26.50 billion in 2022.
He also said the firm looks to double is investments from N2 billion currently to about N4 billion in the next three years and its earnings projected to move from N776.92 million to N1.77 billion in 2019 and N4 billion in December 2022.
Mr Obaleye further said the bank also hopes to increase its earnings per share (EPS) from its current 10 Kobo to 18 kobo in 2019, 25 kobo in 2020, 30 kobo in 2021 and as high as 35 Kobo in 2022.
In addition, there are plans to reduce the cost to income reduced from 60.3 percent to 50 percent in the next three years, with the Non-Performing Loans (NPLs) ratio expected to go down to 3.0 percent from the current 6.9 percent.
The firm further said it hopes to have its return on equity at 12.45 percent in 2019 fiscal year, 15.50 percent in 2020, 35.0 percent in 2021 and 40.0 percent in 2020.
For the profit before tax, the company is looking at N761.7 million in 2019, N1.2 billion next year, N1.75 billion in 2021 and N2.00 billion in 2020.
At event, Mr Obalaye admitted that the company has not had it rosy since it commenced operations in Nigeria especially due to harsh economy and security challenges in its core area of operations, the north.
“Rising insurgency and terrorist activities in the North East and spreading South is affecting every business not only mortgage business.
“Concerns about safety and security of persons and goods is taking its toll on business operations
“Also, lengthy court processes, absence of unified foreclosure law and government right to land.
“The policy initiative of government equally needs to be addressed if home ownership in Nigeria needs to be redeemed,” he stated.
But he assured that the board and management were capable of making Infinity Trust Mortgage Bank stronger amid the challenges.
He said one of the strategies to achieve this is collaborating with the relevant stakeholders to increase its issued share capital from N2.085 billion it has remained since 2013.
“We are working on how we are going to increase this,” Mr Obaleye said, adding that discussions were ongoing with its investment partners, Cordros Capital, one this.
By Modupe Gbadeyanka
The federal government has been asked by the Nigerian Bar Association (NBA) to suspend the implementation of the controversial tax laws.
In a reaction to the tax reform acts, the president of the group, Mr Afam Osigwe (SAN), the suspension of the laws would allow for a proper investigation into allegations of alterations in the gazetted and harmonised copies.
A member of the House of Representatives, Mr Abdussamad Dasuki, alleged that some parts of the laws passed by the parliament were different from the gazetted copy.
To address the issues raised, the NBA said it is “imperative that a comprehensive, open, and transparent investigation be conducted to clarify the circumstances surrounding the enactment of the laws and to restore public confidence in the legislative process.”
“Until these issues are fully examined and resolved, all plans for the implementation of the Tax Reform Acts should be immediately suspended,” the association declared.
It noted that the controversies “raise grave concerns about the integrity, transparency, and credibility of Nigeria’s legislative process.”
“These developments strike at the very heart of constitutional governance and call into question the procedural sanctity that must attend lawmaking in a democratic society,” it noted.
“Legal and policy uncertainty of this magnitude has far-reaching consequences. It unsettles the business environment, erodes investor confidence, and creates unpredictability for individuals, businesses, and institutions required to comply with the law. Such uncertainty is inimical to economic stability and should have no place in a system governed by the rule of law.
“Nigeria’s constitutional democracy demands that laws, especially those with profound economic and social implications, emerge from processes that are transparent, accountable, and beyond reproach. Anything short of this undermines public trust and weakens the foundation upon which lawful governance rests.
“We therefore call on all relevant authorities to act swiftly and responsibly in addressing this controversy, in the overriding interest of constitutional order, economic stability, and the preservation of the rule of law,” the organisation stated.
By Adedapo Adesanya
Demand for hot stocks, including MRS Oil Plc, buoyed the NASD Over-the-Counter (OTC) Securities Exchange by 0.52 per cent on Tuesday, December 23.
The energy company was one of the three price gainers for the session as it chalked up N19.69 to sell at N216.59 per share versus the previous day’s value of N196.90 per share.
Further, FrieslandCampina Wamco Nigeria Plc gained N2.95 to close at N56.75 per unit versus N53.80 per unit and Golden Capital Plc appreciated by 84 Kobo to N9.29 per share from Monday’s N8.45 per share.
Consequently, the market capitalisation went up by N10.95 billion to N2.125 trillion from N2.125 trillion and the NASD Unlisted Security Index (NSI) rose by 18.31 points to 3,570.37 points from 3,552.06 points.
Yesterday, the NASD bourse recorded a price loser, the Central Securities Clearing System Plc (CSCS), which gave up 17 Kobo to close at N33.70 per unit against the previous trading value of N33.87 per unit.
The volume of securities traded at the session went down by 97.6 per cent to 297,902 units from the previous day’s 12.6 million units, the value of securities decreased by 98.5 per cent to N10.5 million from N713.6 million, and the number of deals remained flat at 32 deals.
By value, Infrastructure Credit Guarantee Company (InfraCredit) Plc ended as the most actively traded stock on a year-to-date basis with 5.8 billion units exchanged for N16.4 billion. This was followed by Okitipupa Plc, which traded 178.9 million units valued at N9.5 billion, and MRS Oil Plc with 36.1 million units worth N4.9 billion.
In terms of volume, also on a year-to-date basis, InfraCredit Plc led the chart with a turnover of 5.8 billion units traded for N16.4 billion. Industrial and General Insurance (IGI) Plc ranked second with 1.2 billion units sold for N420.7 million, while Impresit Bakolori Plc followed with the sale of 536.9 million units valued at N524.9 million.
By Dipo Olowookere
It was another bullish trading session for the Nigerian Exchange (NGX) Limited as it closed higher by 0.59 per cent on Tuesday.
The market further rallied due to continued interest in large and mid-cap stocks on the exchange by investors rebalancing their portfolios for the year-end.
Yesterday, Aluminium Extrusion sustained its upward trajectory after it further appreciated by 9.96 per cent to N14.90, as Austin Laz gained 9.81 per cent to close at N2.91, Custodian Investment improved by 9.69 per cent to N38.50, and First Holdco soared by 9.35 per cent to N50.30.
Conversely, Royal Exchange declined by 7.22 per cent to N1.80, Champion Breweries shrank by 6.57 per cent to N15.65, NASCON lost 5.36 per cent to trade at N105.05, Sovereign Trust Insurance depreciated by 5.28 per cent to N3.77, and Japaul went down by 4.51 per cent to N2.33.
At the close of business, 29 shares ended on the gainers’ table and 27 shares finished on the losers’ log, representing a positive market breadth index and bullish investor sentiment.
This raised the All-Share Index (ASI) by 895.06 points to 153,354.13 points from 152,459.07 points and lifted the market capitalisation by N579 billion to N97.772 trillion from the previous day’s N97.193 trillion.
VFD Group finished the day as the busiest stock after it recorded a turnover of 192.0 million units worth N2.1 billion, GTCO exchanged 63.5 million units valued at N5.6 billion, Access Holdings traded 49.8 million units for N1.0 billion, First Holdco sold 45.8 million units valued at N2.3 billion, and Secure Electronic Technology transacted 38.3 million units worth N28.4 million.
In all, market participants bought and sold 677.4 million units valued at N20.8 billion in 27,589 deals compared with the 451.5 million units worth N13.0 billion traded in 33,327 deals on Monday, showing an improvement in the trading volume and value by 50.03 per cent and 60.00 per cent apiece, and a shortfall in the number of deals by 17.22 per cent.
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