According to a report from a local media house, Mortgage and construction loans rose from N7.12bn to 9.91bn in 2021. The loan from Infinity Trust Mortage Bank to its customer rose by 39 per cent.
In the bank 2021 annual report made public, there has been a steady increase in mortgage loans obtained from the bank.
According to reports, 2017 started with N3.10bn increasing to 3.80 billion in 2018. The steady increase continued unto 2019 to N5.34bn. However, between 2020 and 2021 increase in loan rose by about 220 percent.
Accordingly, loan advance given to banks customers encompass residential mortgage loans, estate construction, and commercial loans. Also, Social residential loan mortgage was N2.40bn while none social was N5.93bn.
The estate construction loan was estimated to be N1.30bn while the commercial loan was N320.6m. Also, individual loans amounted to N8.39bn while none individual amounts to N1.30bn.
In a statement released by Dr. Adeyinka Bibilari, Board of Directors Chairman of ITMB, mortgage banking is faced with nonperforming loan challenges due to certain circumstances.
His statement read thus, “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.”
Furthermore, the bank revealed its customer deposit base increased from N3.77bn in 2020 to N3.96bn in 2021 by 5per. Also it declared N542m as profit after tax, while its total assets grew by 22 per cent in 2021.
In another statement released after the public presentation of the bank’s annual report last week, the Chairman of the Board of Directors, said, “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.
“Concerning On-lending and refinancing activities also witnessed an expansion 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.”
