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 Adedapo Adesanya
Four securities weakened the NASD Over-the-Counter (OTC) Securities Exchange by 1.95 per cent on Friday, erasing N41.17 billion from the bourse, which had its market capitalisation at N2.567 trillion compared with the previous session’s N2.618 trillion.
In the same vein, the NASD Unlisted Security Index (NSI) decreased at the close of business by 85.28 points to 4,277.07 points from 4,362.32 points.
The price decliners were led by 11 Plc, which gave up N20.50 to sell at N200.50 per share compared with the preceding day’s N221.00 per share, FrieslandCampina Wamco Nigeria Plc dropped N16.94 to close at N155.20 per unit versus Thursday’s closing price of N172.14 per unit, Central Securities Clearing System (CSCS) Plc went down by N2.11 to N84.68 per share from N86.79 per share, and Afriland Properties Plc lost 11 Kobo to end at N16.74 per unit, in contrast to the N16.85 per unit it closed a day earlier.
During the trading day, the value of transactions jumped by 172.1 per cent to N29.9 million from the preceding session’s N10.9 million, and the volume of trades soared by 136.5 per cent to 955,096 units from the previous 403,901 units, while the number of deals went down by 11.4 per cent to 31 deals from 35 deals.
Great Nigeria Insurance (GNI) Plc remained the most active stock by value on a year-to-date basis, with 3.4 billion units valued at N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units worth N6.5 billion, and CSCS Plc with 68.6 million units sold for N4.7 billion.
GNI Plc also ended the session as the most traded stock by volume on a year-to-date basis, with 3.4 billion units exchanged for N8.4 billion, trailed by Infracredit Plc with 2.3 billion units traded for N6.5 billion, and Resourcery Plc with 1.1 billion units transacted for N415.7 million.
By Dipo Olowookere
The last trading session of this week on the floor of the Nigerian Exchange (NGX) Limited ended on a negative note, with a 0.66 per cent loss on Friday.
This was influenced by sustained selling pressure and cautious trading, which forced investors into profit-taking.
Data obtained by Business Post showed that the energy sector fell by 4.66 per cent, the insurance counter dipped by 2.23 per cent, the consumer goods index depreciated by 0.96 per cent, and the banking segment shed 0.28 per cent, while the industrial goods space remained unchanged.
At the close of business, the All-Share Index (ASI) of Nigeria’s stock exchange went down by 1,531.81 points to 232,049.02 points from 233,580.83 points, and the market capitalisation dropped N983 billion to settle at N148.905 trillion compared with Thursday’s N149.888 trillion.
Aradel was the worst-performing equity after it lost 10.00 per cent to close at N1,417.50. International Energy Insurance slipped by 9.95 per cent to N5.79, Trans-Nationwide Express depreciated by 9.89 per cent to N3.28, eTranzact crashed by 9.79 per cent to N14.75, and UPDC slumped by 9.72 per cent to N28.12.
The best-performing equity for the day was Universal Insurance, which gained 6.32 per cent to close at N1.01, McNichols grew by 5.52 per cent to N8.60, Linkage Assurance expanded by 4.67 per cent to N1.57, NGX Group appreciated by 4.35 per cent to N120.00, and Transcorp increased by 3.62 per cent to N41.50.
As look at the activity level indicated that investors traded 388.7 million stocks worth N18.4 billion in 44,631 deals compared with the 393.7 million stocks valued at N19.2 billion executed in 45,813 deals a day earlier, representing a decline in the trading volume, value, and number of deals by 1.27 per cent, 4.17 per cent, and 2.58 per cent, respectively.
By Adedapo Adesanya
The Naira recorded a loss of 82 Kobo or 0.06 per cent against the United States Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Friday, June 26, exchanging at N1,380.93/$1, in contrast to the previous day’s rate of N1,380.11/$1.
Equally, the domestic currency further weakened against the Pound Sterling in the official FX market yesterday by N6.06 to settle at N1,824.90/£1 versus the preceding session’s N1,818.84/£1, and lost N10.74 on the Euro to sell at N1,577 .58/€1 versus N1,566.84/€1.
At the GTBank forex counter, the Naira depreciated against the greenback during the session by N4 to close at N1,387/$1, in contrast to Thursday’s value of N1,383/$1, and at the parallel market, it was unchanged at N1,395/$1.
Interbank FX activity among financial institutions has fluctuated amid a sharp slowdown in forex market interventions by the Central Bank of Nigeria (CBN), as it allows demand and supply to move the market.
Also, a stronger greenback has generally put significant pressure on emerging-market currencies.
Nigeria has accessed the first tranche of a proposed $5 billion derivatives financing arrangement with First Abu Dhabi Bank PJSC, the largest lender in the United Arab Emirates (UAE).
The $5 billion facility, approved by the National Assembly earlier this year, is part of the federal government’s plan to diversify external financing sources and reduce borrowing costs. Structured as a Total Return Swap with First Abu Dhabi Bank, proceeds are earmarked for refinancing debt and supporting infrastructure financing.
If the proceeds are brought into the country through the official FX market, the transaction will increase the currency reserves or Dollar liquidity.
At the cryptocurrency market, Solana (SOL) grew by 2.2 per cent to $71.92, Cardano (ADA) gained 1.1 per cent to trade at $0.1474, Ripple (XRP) also appreciated by 1.1 per cent to $1.05, Dogecoin (DOGE) expanded by 0.9 per cent to $0.0755, and Ethereum (ETH) improved by 0.4 per cent to $1,578.84.
On the flip side, TRON (TRX) slid 0.6 per cent to $0.3203, Binance Coin (BNB) slumped by 0.3 per cent to $564.33, and Bitcoin fell by 0.2 per cent to $60,219.37, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 each.
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