Infinity Trust Mortgage Bank Proposes ₦0.35 Dividend and 1-for-1 Bonus Issue for FY 2025
Infinity Trust Mortgage Bank Announces 35 Kobo Dividend, Capitalization Boost
Infinity Trust Mortgage Bank (ITMB) PLC has announced a final dividend proposal of 35 kobo per ordinary share for the 2025 financial year, alongside a significant 1-for-1 bonus share issue. The move, disclosed in a corporate filing on the Nigerian Exchange (NGX), reflects the bank’s commitment to distributing value while simultaneously strengthening its capital base.
The Board of Directors of Infinity Trust Mortgage Bank recommended the dividend following a review of the bank’s audited financial statements for the year ended December 31, 2025. This proposal is subject to the formal approval of shareholders at the upcoming Annual General Meeting (AGM) and the requisite regulatory clearances from the Central Bank of Nigeria (CBN).
Shareholder Returns and Dividend Timeline
The proposed payout of 35 kobo per share represents a strategic distribution of earnings to the bank’s investors. According to the disclosure, the dividend will be paid to shareholders whose names appear in the Register of Members at the close of business on a specified qualification date.
If approved, the dividend will be paid electronically to shareholders who have completed the e-dividend registration and mandated the Registrar to pay their dividends directly into their bank accounts. This aligns with the Securities and Exchange Commission’s (SEC) drive to reduce the volume of unclaimed dividends within the Nigerian capital market.
Capital Strengthening via Bonus Issue
Beyond the cash distribution, the Board has approved a bonus issue of one new ordinary share for every one ordinary share held by existing stockholders (1-for-1). This capitalization of reserves is a dual-purpose strategy: it rewards long-term investors by increasing their shareholding volume and enhances the bank’s paid-up share capital.
By doubling the number of outstanding shares, Infinity Trust Mortgage Bank is positioning itself to meet higher capital requirements and improve liquidity in its stock on the NGX. This move is particularly relevant as the Nigerian mortgage banking sector faces evolving regulatory standards regarding capital adequacy.
Financial Context and Market Positioning
The announcement follows a period of consistent performance for Infinity Trust Mortgage Bank, which remains a key player in Nigeria’s Primary Mortgage Institution (PMI) landscape. While the full audited accounts are expected to provide deeper insights into the bank’s profit after tax (PAT) and gross earnings, the size of the proposed dividend and bonus indicates a robust balance sheet.
The Nigerian mortgage sector is currently navigating high interest rate environments and inflationary pressures. By opting for a significant bonus issue, ITMB demonstrates a preference for retaining a portion of its earnings to cushion its operations and fund future mortgage lending expansions.
Forward-Looking Perspective
The proposal by the Board of Infinity Trust Mortgage Bank signals a balance between immediate yield for investors and long-term institutional stability. For the broader housing finance market, the bank’s ability to maintain dividend payments while doubling its share count suggests a resilient business model in a volatile macroeconomic climate.
Shareholders and market analysts will now look forward to the AGM, where the bank’s leadership is expected to outline the growth strategy for 2026, specifically regarding its digital mortgage offerings and its role in addressing Nigeria’s housing deficit.
