Infinity Trust Mortgage Bank earnings rise on Estate Income
Infinity Trust Mortgage Trust Bank (ITMB) Nigeria Plc earnings spiked in the nine-month period, thanks to contributions from estate mortgage.
The real estate giant has been adding value to shareholders wealth while embarking on aggressive expansion with a view to bolstering revenue.
For the first nine months through September 2017, ITMB’s interest income increased by 6.15 percent to N426.57 million from N401.84 million the previous year.
The growth at the top line (revenue) was driven by a 48.52 percent rise in Estate Mortgage Income to N113.77 million in the period under review.
Analysts say the Nigeria’s growing population and its huge infrastructure gap is a fillip on the housing, real estate and mortgage industry.
This means the return on investment on housing could be substantial as the country has 17 million housing deficits.
Experts and industry players are of the view that companies have to go to the capital market to raise money and fund housing projects.
“Capital market gives us the opportunity to finance real estate projects. The 17 million housing deficit at an average cost of N10 million per unit translates to N170 trillion.
“This means there is a N170 trillion opportunity in the housing sector,” said Bolaji Balogun, chief executive officer of Lagos-based investment firm, Chapel Hill Advisory Partners Limited.
According to a recent report by the by the National Bureau of Statistics (NBS), real estate sector contracted from -3.1 in Q1 to -3.53% in Q2,
“We were able to raise money from the longer end of the yield curve, said Charles Inyangete, Chief Executive Officer (CEO) of Nigeria Mortgage Refinancing Company (NMRC).
“We need to address from the value chain. We have realised that there has to be an ecosystem and connecting mortgages to the capital market,” said Inyangete.
NMRC has issued sum of N2 billion through the bond market to finance its affordable housing scheme for the citizens.
Poor government regulations, huge costs and fines by state and local authorities and macroeconomic headwinds are holding back the growth of operators in the housing, real estate and mortgage industry.
Further analysis of Infinity Trust Mortgage Bank showed the company posted a profit after tax of N150.15 million while its total assets stood at N8.08 billion as at September 2017.
“Vacancy factor up 4.7 percent to 174 in the third quarter of (Q3)17 as many properties remained unoccupied,” said analysts at Financial Derivatives Company (FDC) Limited, Market values lower than replacement cost while demand for high-end luxury residential properties will remain low”
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