ABUJA, Nigeria (CU)_Despite the COVID-19 pandemic, which has taken a toll on the lives and livelihoods of people, mortgage deposits in Nigeria grew by an astounding 94.5 per cent in 2020.
According to the Infinity Trust Mortgage Bank (ITMB), one of the leading mortgage institutions in the country, deposits in 2020 grew to ₦1.94 billion (US$ 4.73 million) from ₦3.77 billion in the previous year. Meanwhile, the bank also saw an increase in loans by 33 per cent, raising the mortgage lending from ₦5.34 billion in 2019 to ₦7.12 billion in 2020.
According to Dr. Adeyinka Bibilari, the Chairman of the Board of Directors, the financial results were commendable, given the economic impacts of the pandemic. “This was underpinned by a robust risk management framework, strengthening of the internal control along with good technological framework and innovation in internal operations and processes,” he said.
Speaking at the bank’s annual general meeting, Dr. Bibilari assured shareholders that the ITMB intends to implement comprehensive growth initiatives in order to improve the bank’s market standing, while optimising business.
ITMB’s audited figures show an increase in profit before tax from ₦444.38 million in 2019 to ₦465.06 million in 2020, while the aggregate operating expenses decreased by 15 per cent last year, to ₦625 million. Meanwhile, total assets grew by 25 per cent to ₦13.34 billion in 2020, while refinancing and on-lending activities also experienced a growth of 22 per cent from ₦2.19 billion in 2019. On the other hand, shareholders’ funds which stood at ₦6.20 billion in 2019 also grew by 4 per cent to ₦6.44 billion last year.
“I am proud that in addition to successfully navigating all of the challenges of operating in a pandemic environment, we achieved improvements in profitability,” Managing Director and Chief Executive Officer, Dr. Olabanjo Obaleye said. Addressing the shareholders during the meeting, the bank’s CEO highlighted the need to attract average income earners who intend to purchase property through efficient mortgage delivery, while maintaining competitive interest rates amid fluctuating tenors.
