Infinity Trust increases dividend as profit rises by 22%

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Infinity Trust increases dividend as profit rises by 22%
February 7, 2020
 
in Equities

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THE board of directors of Infinity Trust Mortgage Bank (ITMB) Plc  has approved 16.7 per cent increase in dividend payout as the mortgage bank grew its net profit by 22 per cent to N400.1 million in 2019.

Directors of ITMB on Thursday indicated that shareholders will receive a dividend per share of 3.5 kobo for the 2019 business year as against 3.0 kobo paid for the 2018 business year.

Key extracts of the audited report and accounts of ITMB for the year ended December 31, 2019 released on Thursday at the Nigerian Stock Exchange (NSE) indicated well-rounded growth. Gross earnings rose from N1 billion in 2018 to N1.38 billion in 2019.

Profit before tax increased from N366.76 million to N444.38 million while net profit after tax rose from N327.22 million to N400.14 million.

With these, earnings per share improved from 6.84 kobo in 2018 to 8.59 kobo in 2019. Managing Director, Infinity Trust Mortgage Bank (ITMB) Plc, Dr. Olabanjo Obaleye had during an interactive session at the Nigerian Stock Exchange (NSE) assured that the mortgage bank would continue to maintain profitability despite the harsh business environment.

He said the key drivers of the bank’s growth has been its strong brand presence, increased customer confidence, marketing efforts, strong risk management and expenditure control.

According to him, the bank has experienced unequivocal growth through the public and private housing initiatives supported with efficient risk management framework.

“The bank will also seek to continuously enhance earnings, profits, and returns to shareholders as well as pursue expansion and growth,” Obaleye said.

He said the bank has articulated and instituted liquidity and information technology contingency plans, capital management plans and dividend policies to guide against business disruptions and depletion of capital. He enjoined the investing public to invest in the bank as it is set to redefine the face of mortgage banking in Nigeria.

He noted that the bank has performed excellently since its listing on the stock exchange in 2013 as the bank has increased its number of shareholders, attained national primary mortgage bank status and opened its Lagos regional office.

“We have received strong industry and regulatory ratings, and many industry and international awards. The bank also added two independent directors and became shareholders with Nigeria Mortgage Refinance Company and Mortgage Warehouse Funding Limited. The bank has held its annual general meeting consistently,” Obaleye said.

According to him, during the period, ITMB has recorded reasonable growth in its key business fundamentals with total assets, loans and investments rising by 51 per cent, 285 per cent and 10,000 per cent respectively. He pointed out that deposits and shareholders’ funds had grown by 122 per cent and 9.0 per cent respectively while gross earnings crossed the N1 billion mark in 2018.