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 Aduragbemi Omiyale
The ban on the export of raw shea nuts from Nigeria has been extended by one year by President Bola Tinubu.
A statement from the Special Adviser to the President on Information and Strategy, Mr Bayo Onanuga, on Wednesday disclosed that the ban is now till February 25, 2027.
It was emphasised that this decision underscores the administration’s commitment to advancing industrial development, strengthening domestic value addition, and supporting the objectives of the Renewed Hope Agenda.
The ban aims to deepen processing capacity within Nigeria, enhance livelihoods in shea-producing communities, and promote the growth of Nigerian exports anchored on value-added products, the statement noted.
To further these objectives, President Tinubu has authorised the two Ministers of the Federal Ministry of Industry, Trade and Investment, and the Presidential Food Security Coordination Unit (PFSCU), to coordinate the implementation of a unified, evidence-based national framework that aligns industrialisation, trade, and investment priorities across the shea nut value chain.
He also approved the adoption of an export framework established by the Nigerian Commodity Exchange (NCX) and the withdrawal of all waivers allowing the direct export of raw shea nuts.
The President directed that any excess supply of raw shea nuts should be exported exclusively through the NCX framework, in accordance with the approved guidelines.
Additionally, he directed the Federal Ministry of Finance to provide access to a dedicated NESS Support Window to enable the Federal Ministry of Industry, Trade and Investment to pilot a Livelihood Finance Mechanism to strengthen production and processing capacity.
Shea nuts, the oil-rich fruits from the shea tree common in the Savanna belt of Nigeria, are the raw material for shea butter, renowned for its moisturising, anti-inflammatory, and antioxidant properties. The extracted butter is a principal ingredient in cosmetics for skin and hair, as well as in edible cooking oil. The Federal Government encourages processing shea nuts into butter locally, as butter fetches between 10 and 20 times the price of the raw nuts.
The federal government said it remains committed to policies that promote inclusive growth, local manufacturing and position Nigeria as a competitive participant in global agricultural value chains.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange expanded for the first session this week by 1.27 per cent on Wednesday, February 25.
This lifted the NASD Unlisted Security Index (NSI) above 4,000 points, with a 50.45-point addition to close at 4,025.25 points compared with the previous day’s 3,974.80 points, as the market capitalisation added N30.19 billion to close at N2.408 trillion versus Tuesday’s N2.378 trillion.
At the trading session, FrieslandCampina Wamco Nigeria Plc grew by N5.00 to trade at N100.00 per share compared with the previous day’s N95.00 per share, Central Securities Clearing System (CSCS) Plc improved by N4.18 to sell at N70.00 per unit versus N65.82 per unit, and First Trust Mortgage Bank Plc increased by 14 Kobo to trade at N1.59 per share compared with the previous day’s N1.45 per share.
However, the share price of Geo-Fluids Plc depreciated by 27 Kobo at midweek to close at N3.27 per unit, in contrast to the N3.30 per unit it was transacted a day earlier.
At the midweek session, the volume of securities went down by 25.3 per cent to 8.7 million units from 11.6 million units, the value of securities decreased by 92.5 per cent to N80.7 million from N1.2 billion, and the number of deals slipped by 33.3 per cent to 32 deals from the preceding session’s 48 deals.
At the close of business, CSCS Plc remained the most traded stock by value on a year-to-date basis with 34.1 million units exchanged for N2.0 billion, trailed by Okitipupa Plc with 6.3 million units traded for N1.1 billion, and Geo-Fluids Plc with 122.0 million units valued at N478.0 million.
Resourcery Plc ended the trading session as the most traded stock by volume on a year-to-date basis with 1.05 billion units valued at N408.7 million, followed by Geo-Fluids Plc with 122.0 million units sold for N478.0 million, and CSCS Plc with 34.1 million units worth N2.0 billion.
By Dipo Olowookere
The bears consolidated their dominance on the Nigerian Exchange (NGX) Limited on Wednesday, inflicting an additional 0.09 per cent cut on the market.
At midweek, the market capitalisation of the domestic stock exchange went down by N73 billion to N124.754 trillion from the preceding day’s N124.827 trillion, and the All-Share Index (ASI) slipped by 114.32 points to 194,370.20 points from 194,484.52 points.
A look at the sectoral performance showed that only the consumer goods index closed in green, gaining 1.19 per cent due to buying pressure.
However, sustained profit-taking weakened the insurance space by 3.79 per cent, the banking index slumped by 2.07 per cent, the energy counter went down by 0.24 per cent, and the industrial goods sector shrank by 0.22 per cent.
Business Post reports that 25 equities ended on the gainers’ chart, and 54 equities finished on the losers’ table, representing a negative market breadth index and weak investor sentiment.
RT Briscoe lost 10.00 per cent to sell for N10.35, ABC Transport crashed by 10.00 per cent to N6.75, SAHCO depreciated by 9.98 per cent to N139.35, Haldane McCall gave up 9.93 per cent to trade at N3.99, and Vitafoam Nigeria decreased by 9.93 per cent to N112.50.
Conversely, Jaiz Bank gained 9.95 per cent to settle at N14.03, Okomu Oil appreciated by 9.93 per cent to N1,765.00, Trans-nationwide Express chalked up 9.77 per cent to close at N2.36, Fortis Global Insurance moved up by 9.72 per cent to 79 Kobo, and Champion Breweries rose by 5.39 per cent to N17.60.
Yesterday, 1.4 billion shares worth N46.2 billion were transacted in 70,222 deals compared with the 1.1 billion shares valued at N53.4 billion traded in 72,218 deals a day earlier, implying a rise in the trading volume by 27.27 per cent, and a decline in the trading value and number of deals by 13.48 per cent and 2.76 per cent, respectively.
Fortis Global Insurance ended the session as the busiest stock after trading 193.7 million units for N152.7 million, Zenith Bank transacted 120.7 million units worth N11.1 billion, Japaul exchanged 114.8 million units valued at N407.0 million, Ellah Lakes sold 98.4 million units worth N999.2 million, and Access Holdings traded 63.1 million units valued at N1.7 billion.
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