Adedapo Adesanya
By Adedapo Adesanya
The management of Infinity Trust Mortgage Bank Plc (ITMB) has hinted that it could generate more funds for the company by offering its shares to interested investors.
This hint was dropped on Monday by Managing Director/CEO of Infinity Trust Mortgage Bank, Mr Onabanjo Obalaye, during the bank’s Facts Behind The Figures at the Nigerian Stock Exchange (NSE).
The company, which had the honour of beating the closing gong yesterday, was at the exchange to give explanation on its audited full year ended December 31, 2018, and the unaudited results for the seven months ended July 31, 2019.
Business Post reports that during the presentation, Mr Obalaye rolled out the bank’s expectations, results of operations, business prospects and opportunities considering the challenging operating environment, which he described as “very tough.”
According to Mr Obalaye, “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.”
Also looking at regulations, he noted that many regulators failed to understand the dynamics of the business environment leading to poor policy implementation.
Looking at the rising cost, Mr Obalaye said, “The drive of government to generate revenue without knowing if it kills businesses or not is equally adding to the cost of operating businesses in this environment.”
He, however, noted that despite the unfriendly factors, Infinity Trust Mortgage Bank has been able to move its total assets to N11 billion from was N7.39 billion in 2013 when it was listed on the exchange.
Mr Obalaye also disclosed that the Shareholders Funds has moved to N6 billion while its loans and advances is currently at N5.5 billion.
Looking at what the company has achieved when it became a public company in January 2013 to date, Mr Obalaye said, “We have moved our shareholders from 150 to 500 and we became a national mortgage bank.”
He said in recognition of the support of its shareholders, the bank has declared and paid dividends every year.
Analyzing the bank’s financials based on its Key Performance Indicators (KPIs) from 2013 to the full year of 2018 and inclusive of its seven months performance in 2019, the Managing Director said, ‘Total Assets in 2013 was N7.39 billion which moved to N10.35 billion in 2018 and is currently at N11.23 billion. Loan and Advances in its first year as a public company was at N1.31 billion which moved up to N3.8 billion in 2018 and is now at N5.05 billion so far, with investments rowing to N2 billion as at the period calculated in 2019.’
Speaking on the issued share capital, which has remained at N2.085 billion since 2013, Mr Obaleye said, “We are working on how we are going to increase this”, disclosing that the bank was working with its investment partners, Cordros Capital.
Remarking on the performance, Obalaye noted that the growth was due to strong brand presence, improved customer confidence, efficient corporate governance, public and private housing initiatives among other drivers.
