The third-quarter 2024 results of Infinity Trust Mortgage Bank Plc showed that pre-tax profits increased by 106.99% year over year to N584.406 million.
Pre-tax profits for the first nine months increased to N1.333 billion, compared to N814 million during the same period last year.
Key Highlights (2024 Q3 vs. 2023 Q3):
- Turnover: N1.265 billion (+84.41% YoY)
- Interest Income: N912.634 million (+46.95% YoY)
- Interest Expense: N319.771 million (+91.89% YoY)
- Net Interest Income: N592.862 million (+30.47% YoY)
- Net Fees and Commission Income: N27.352 million (+22.91% YoY)
- Total Operating Income: N945.521 million (+82.01% YoY)
- Total Operating Expenses: N316.004 million (+34.27% YoY)
- Profit for the Period: N584.170 million (+110.41% YoY)
- Earnings Per Share: N0.55 (+123.71% YoY)
- Loans and Advances to Customers: N16.888 billion (+9.93%)
- Cash and Balances with Central Bank: N127.828 million (+19.13%)
- Total Assets: N24.032 billion (+16.35%)
- Due to Customers: N5.921 billion (+34.14%)
- Total Liabilities: N16.835 billion (+31.62%)
Analysis:
The Q3 2024 results of Infinity Mortgage Bank Plc show remarkable increases in revenue and profitability, which contributed to the company’s great nine-month performance.
Infinity Mortgage Bank Plc reported a post-tax profit of N584.17 million for the third quarter of 2024. This increased the nine-month post-tax profit to N1.303 billion, surpassing the full-year 2023 post-tax profit by more than 30%, combined with N718.47 million from the previous quarters.
Strong turnover – which hit N1.265 billion in Q3 2024, bringing the nine-month total to N3.059 billion – fueled the 110% increase in post-tax profit.
Performance at the Top Line: The main driver of turnover was a significant increase in interest income, which comprised 72% of the entire turnover.
Interest Income Contributed by Mortgages: In Q3, 75% of total interest income came from home loans and consumer advances, a 3.16% decrease from the previous quarter. Comparing this to the same period in 2023, the nine-month contribution decreased by 0.47% to 76.03%.
Interest Charges: In Q3, 35% of interest income was spent on interest. Compared to 29% in H1 2024 and 27% for the first nine months of 2023, this seems tiny but represents an increase.
Balance Sheet Health: The main driver of the 16.35% increase in total assets to N24.032 billion was loans and advances, accounting for over 71% of total assets.
Early outpacing the previous year’s earnings could generate favorable sentiment toward the company, which could raise demand and increase its market value in the near run.
With a 372% year-to-date (YtD) gain in 2023, the stock was among the NGX’s best performers. The company has posted a 16.7% year-to-date gain so far, demonstrating that the positive trend has continued into 2024.
