Mortgage and construction loans from the Infinity Trust Mortgage Bank to its customers rose by 39 per cent from N7.12bn in 2020 to N9.91bn in 2021, The PUNCH has learnt.
The bank’s 2021 annual report and accounts document obtained by our correspondent shows a steady increase in the mortgage loans obtained from the bank.
In 2017, it was N3.10bn, increasing to N3.80bn in 2018. The steady increase continued in 2019 to N5.34bn.
Between 2021 and 2021, the increase in loans and advances was about 220 per cent
The loans and advances to the bank customers covered residential mortgage loans, estate construction, and commercial mortgage, among others. The social residential mortgage was N2.40bn, while the non-social residential mortgage was N5.93bn, having the highest share.
Estate construction was N1.30bn, while commercial mortgage was N320.6m. Also, loans to individuals were about N8.39bn, while to non-individuals were about N1.30.
In his statement in the report document, the Chairman, Board of Directors, ITMB, Dr Adeyinka Bibilari, said the mortgage banking industry was faced with non-performing loan challenges due to certain reasons.
He said, “The mortgage bank industry is faced with non-performing loan challenges due to poor economic performance induced by COVID-19. Many mortgagors had a high percentage of their income wiped out by the rising cost of household products due to inflation, thus, becoming a challenge in meeting their obligations to the Banks.
“High-interest rate is another challenge as it is difficult for the Industry to provide mortgage at the single interest rate, and this is raising the cost of housing finance to unbearable heights, as many people cannot afford or access the available mortgage finance products due to Money market rates that fluctuated within and above the asymmetric corridor, reflecting liquidity conditions in the Banking system.”
The ITMB further disclosed that its customer deposit base increased by 5 per cent from N3.77bn in 2020 to N3.96bn in 2021.
The bank also declared the sum of N542m profit after tax, with its total assets growing by 22 per cent from N13.34bn in 2020 to N16.19bn in 2021.
In a statement after the public presentation of the bank’s annual report last week, the Chairman of the Board of Directors, was quoted as saying, “We celebrate the bank’s robust results, with a net profit after tax of N542m, which shows the strength and resilience of our ambitious strategy. Our solid balance sheet, disciplined governance and risk management approach will position us for significant growth in 2022.
“On-lending and refinancing activities also witnessed a growth of 22 per cent from N2.68bn to N4.76bn. Total assets grew by 22 per cent from N13.34bn in 2020 to N16.19bn in 2021, while shareholders’ funds grew by five per cent from N6.44bn in 2020 to N6.77bn in 2021. The bank’s customer deposit base increased by five per cent from N3.77bn in 2020 to N3.96bn in 2021.”
The press statement further revealed that the bank wholly or partly financed at least 20 modern estates in Abuja.