Nigeria’s listed mortgage banks – Abbey Mortgage Bank, Infinity Mortgage Bank, and LivingTrust Mortgage Bank – have reported a collective 40.4% increase in net interest income to ₦12.8 billion for the first nine months of 2024, up from ₦8.5 billion in the same period last year.
The significant growth in net interest income can be attributed to the increased interest rates implemented by the central bank, which has positively impacted the mortgage banks’ revenue streams. The banks’ combined mortgage loans and advances under interest received from customers also rose to ₦5.4 billion from ₦3.5 billion.
Abbey Mortgage Bank led the pack with an interest income of ₦8.09 billion, followed by Infinity Mortgage Bank with ₦2.5 billion and LivingTrust Mortgage Bank with ₦2.2 billion.
Individual Bank Performance:
Abbey Mortgage Bank reported a notable increase in its financial performance for the nine-month period. Its after-tax profit rose to ₦928.3 million, representing a 24% growth from ₦748.8 million in the same period last year. The bank’s revenue also increased significantly to ₦8.4 billion, up 53% from ₦5.5 billion. Additionally, Abbey Mortgage Bank’s total assets grew by 55% to ₦84.1 billion.
Infinity Mortgage Bank also recorded impressive growth, with its after-tax profit rising to ₦1.3 billion, representing a 66% increase from ₦781.6 million in the same period last year. The bank’s revenue increased by 57% to ₦3.06 billion, while its total assets grew by 20% to ₦24 billion.
LivingTrust Mortgage Bank’s financial performance also showed significant improvement, with its after-tax profit rising to ₦751.7 million, representing a 44% growth from ₦521.3 million in the same period last year. The bank’s revenue increased by 42% to ₦2.7 billion, while its total assets grew by 20% to ₦20.2 billion.
Industry analysts believe that the mortgage banks’ impressive performance is a testament to their resilience and adaptability amid monetary policy changes. The increased interest rates have provided a boost to the banks’ revenue streams, enabling them to grow their assets and improve their profitability.
The mortgage banks’ focus on providing affordable housing finance solutions to Nigerians has also contributed to their growth. Abbey Mortgage Bank, Infinity Mortgage Bank, and LivingTrust Mortgage Bank offer various loan products, including mortgage loans, home improvement loans, personal loans, and commercial loans.
As the Nigerian economy continues to navigate the challenges of interest rate hikes, the mortgage banks’ ability to adapt and innovate will be crucial in maintaining their growth momentum.