Business

Mortgage banks’ profits decline

Joseph Olaoluwa

Mortgage banks in the country have been hard hit by the COVID-19 pandemic, the half-year financial results of the companies listed on the Nigerian Stock of Exchange have shown.

Infinity Trust Mortgage Bank Plc and the Omoluabi Mortgage Bank Plc saw their profits decline in the first half of the year on the back of a pandemic, which limited banks operations for months.

Infinity Trust Mortgage Bank’s turnover for the first six months of the year dwindled by 12.8 per cent to N581.7m, compared to the N667.6m recorded in the same period of 2019.

The company’s interest and similar income for H1 2020 reduced by 5.8 per cent to N468.1m from N497m in H1 2019.

It recorded a profit before tax of N160.1m for H1 2020 as against a profit before tax of N224.9m in the corresponding period of 2019.

ITMB recorded a profit after tax of N150.5m for H1 2020, as against a profit after tax of N211.4m in the corresponding period of 2019, representing a profit reduction of 28.8 per cent.

Similarly, Omoluabi Mortgage Bank Plc recorded a revenue decline of N231.3m for the first six months of 2020, as against N247.1m recorded in H1 2019, representing a decline of 6.3 per cent.

Its interest and similar income for the first half of the year increased to N124.9m from N105m in H1 2019. This represents an increase of 18.95 per cent.

Profit before tax stood at N41.4m, compared to the N62.6m recorded in the first half of 2019. This represents a decline of 33.7 per cent.

Meanwhile, Abbey Building Society recorded gross earnings of N714.6m by June 2020, down from N744.3m recorded in June 2019.

It also recorded a loss of N249.6m in the first half of the year, as against a profit after tax of N79.1m in the corresponding period of 2019.

Source: punchng.com