Infinity Trust Bank disburses N9.91 billion mortgages to customers

By on May 16, 2022 0

Infinity Trust Mortgage Bank’s mortgage and construction loans to its customers increased by 39% from N7.12 billion in 2020 to N9.91 billion in 2021, The punch has learned.

The bank’s 2021 annual report and accounts document obtained by our correspondent show a steady increase in mortgage loans obtained from the bank.

In 2017, it was 3.10 billion naira, rising to 3.80 billion naira in 2018. The steady increase continued in 2019 to reach 5.34 billion naira.

Between 2021 and 2021, the increase in loans and advances was around 220%.

Loans and advances to bank customers covered, among others, residential mortgages, building construction and commercial mortgages. The social residential mortgage was N2.40 billion, while the non-social residential mortgage was N5.93 billion, with the highest share.

Property construction was N1.30 billion, while commercial mortgage was N320.6 million. In addition, loans to individuals amounted to around 8.39 billion naira, while to non-individuals it was around 1.30 naira.

In his statement in the report, ITMB Chairman of the Board, Dr. Adeyinka Bibilari said that the mortgage banking sector is facing problems with non-performing loans due to certain reasons.

He said: “The mortgage banking industry is facing non-performing loan issues due to poor economic performance induced by COVID-19. Many mortgagors have seen a high percentage of their income wiped out by the rising cost of household products due to inflation, making it a challenge to meet their obligations to banks.

“The high interest rate is another challenge as it is difficult for the industry to provide mortgages at the single interest rate, and this increases the cost of housing finance to unbearable heights as many people cannot unable to afford or access available mortgage financing products due to money market rates which fluctuated within and above the asymmetric corridor, reflecting liquidity conditions in the banking system.

The ITMB further disclosed that its customer deposit base grew by 5% from 3.77 billion naira in 2020 to 3.96 billion naira in 2021.

The bank also reported an after-tax profit of N542 million, with its total assets increasing by 22% from N13.34 billion in 2020 to N16.19 billion in 2021.

In a statement after the public presentation of the bank’s annual report last week, the chairman of the board is quoted as saying: “We are celebrating the bank’s strong results, with net profit after tax of N542 million, which shows the strength and resilience of our ambitious strategy. Our strong balance sheet, disciplined governance and risk management approach will position us for significant growth in 2022.

“On-lending and refinancing business also saw growth of 22% from N2.68 billion to N4.76 billion. Total assets increased by 22% from 13.34 billion naira in 2020 to 16.19 billion naira in 2021, while shareholder funds increased by 5% from 6.44 billion naira in 2020 to N6.77 billion in 2021. The bank’s customer deposit base grew by five. percent from N3.77 billion in 2020 to N3.96 billion in 2021.”

The press release further revealed that the bank had fully or partially financed at least 20 modern properties in Abuja.

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