The prot after tax of LivingTrust Mortgage Bank Plc has dipped by 17.96 per cent to N745.80m at the end of
December 2023 compared to N909.15m in the prior year.
This was revealed in the unaudited and interim financial statements for the fourth quarter ended December 31, 2023, which
was approved by the board on January 19, 2024, and led with the Nigerian Exchange Limited.
Its gross earnings were up 14.22 per cent to N2.9bn in the period under review, strengthened by interest and similar income, which
rose to N2.31bn from N1.87bn.
However, fees and commission income dipped by 7.63 per cent to close at N152.33m, while basic earnings per share was N14.92,
lower than N18.18 in 2022.
Cash and its equivalent and balances with the central bank rose significantly to N710.230m from N141.492m as of the end of 2022.
Loans and advances to customers increased to N12.991bn from N10.679bn, and customers’ liabilities, which consist of demand,
savings and time deposits, rose to N9.062bn from N5.491bn in the
previous year.
The mortgage bank’s share stood at N2.98 at the end of last year, instead of N1.60 in the previous year.
It closed trading with a market capitalsation worth N16.35bn at N3.27 per unit, marking a 9.73 per cent gain during the sustained
rally on Wednesday.
Recently, Governor Ademola Adeleke of Osun State, which is one of the major investors in the bank, urged the management of
LivingTrust Mortgage Bank to establish more branches in the state to deepen financial inclusion.
The governor said that at a meeting with the management of the bank, led by its chairman, Adebayo Jimoh, and managing director,
Adekunle Adewole, in Osogbo.
Adeleke observed that establishing more branches would further complement the state government’s efforts to stimulate economic
activities and development amongst the rural population.
Although the real estate and construction sectors have enjoyed a significant rise in banks’ borrowings, this has not translated to
improved housing stocks due to inflation and exchange rate volatility. Experts say, there could be a crisis soon as the ability of
developers to repay credits will be low, writes VICTOR GBONEGUN.
Rising ination and exchange rates are among the headwinds in the country’s real estate and construction sectors increasing
borrowings due to higher prices of imported building materials and machinery
Currently, running real estate business is becoming more expensive and hectic, as the usual funds from off-takers to kick-start
projects have declined as consumers have less disposable income and many prospective homeowners are losing confidence in private developers’ ability to
deliver schemes. The last option open to them have been through financial institutions, especially commercial banks and development agencies.
Nigeria’s inflation rate rose to its highest in more than 27 years last December, exacerbating a cost-of-living crisis and
piling more pressure on the Central Bank of Nigeria (CBN) to raise interest rates.
Consumer inflation rose for the 12th straight month in December to 28.92 per cent year-on-year from November’s 28.20
per cent, the National Bureau of Statistics said. The nation has not climbed this high since the mid-1996.
Inflation and unstable exchange rate are impacting negatively on cost of borrowings as banks charge as high as 28-30 per cent as
interest. The exchange rate against the dollar averaged $1,300 last week, compared with $460.418 in April 2023.
