ITMB Approves ₦1.46 Billion Dividend, Bonus Shares Amid 82% Profit Growth

Infinity Trust Mortgage Bank Strengthens Capital Base With Bonus Share Plan

Shareholders of Infinity Trust Mortgage Bank Plc (ITMB) have approved a gross dividend payout of ₦1.46 billion and a one-for-one bonus share issue following strong earnings growth recorded during the 2025 financial year.

The approvals were granted at the bank’s Annual General Meeting after the lender reported significant increases across key financial indicators, including profitability, loans, deposits, and asset growth. According to corporate filings submitted to the Nigerian Exchange (NGX), the bank proposed a dividend of 35 kobo per ordinary share alongside the bonus share issuance as part of efforts to strengthen shareholder value and expand its capital base

/ You Might Also Like /

The development comes amid improving performance across segments of Nigeria’s mortgage banking sector, where lenders are benefiting from increased credit demand, rising interest income, and expanding retail banking activities.

Profit rises sharply on stronger lending activity

ITMB recorded strong growth in its 2025 financial performance, supported largely by loan expansion and higher earnings from core banking operations.

According to the bank’s audited financial statements, profit before tax rose to approximately ₦3.02 billion in 2025, representing a year-on-year increase of about 75.1% from ₦1.72 billion recorded in 2024. Profit after tax increased by 95.7% to ₦2.9 billion from ₦1.48 billion in the previous year.

Gross earnings climbed by 50.5% to ₦6.61 billion, driven primarily by growth in mortgage lending and improved interest income margins. Interest income rose by 54.3% during the period as the bank expanded its loan portfolio.

The strong earnings performance reflects broader trends within Nigeria’s financial sector, where higher interest rate environments have boosted profitability for several banking institutions despite persistent macroeconomic pressures.

Loan and deposit growth strengthen balance sheet

The bank also reported significant expansion in customer deposits and total loans during the financial year.

According to GCR Ratings, ITMB’s total asset base rose to ₦44.7 billion, while loan growth increased by 84.4% and customer deposits expanded by 81.6%, reflecting stronger market activity and growing customer confidence.

The institution maintained relatively strong asset quality metrics despite rapid balance sheet expansion. GCR Ratings reported that the bank’s non-performing loan ratio stood at 1.7%, highlighting relatively low impaired credit exposure compared with broader industry averages.

Analysts note that maintaining credit quality while expanding lending operations remains critical for mortgage banks operating within Nigeria’s challenging economic environment, where inflationary pressures and high borrowing costs continue to affect households and businesses.

Bonus share issue to strengthen capital position

The one-for-one bonus share proposal means shareholders will receive one additional ordinary share for every existing share held, subject to final regulatory approvals and completion of the allotment process.

The bank said the bonus issue forms part of its broader capital management strategy aimed at improving liquidity, supporting future expansion, and strengthening shareholder participation.

Corporate action filings submitted to the NGX indicated that shareholders whose names appeared on the company’s register by the qualification date would be eligible for both the dividend payment and bonus allotment.

Market analysts say bonus share issuances often improve stock liquidity and broaden retail investor participation by increasing the number of outstanding shares without immediately affecting company cash flows.

Mortgage banking sector faces mixed operating environment

The strong financial performance comes despite broader challenges facing Nigeria’s housing finance market, including elevated construction costs, inflationary pressures, foreign exchange volatility, and affordability constraints.

Mortgage penetration in Nigeria remains relatively low compared with peer emerging markets, largely due to limited long-term financing, weak property documentation systems, and high borrowing costs.

However, industry operators continue to position mortgage banking as an important component of addressing Nigeria’s estimated housing deficit, which remains one of the largest in Africa.

ITMB stated that its growth strategy remains focused on expanding housing finance access while maintaining disciplined risk management and operational efficiency.

Regulatory confidence and ratings support outlook

In April 2026, GCR Ratings assigned ITMB a BBB+(NG) long-term rating and an A2(NG) short-term rating with a stable outlook, citing the bank’s improving financial position, balance sheet growth, and risk management controls.

The rating agency noted that the institution’s capital strength and improving operational metrics support its medium-term growth outlook within Nigeria’s financial services industry.

The bank also disclosed plans to strengthen governance and oversight functions through board-level appointments and operational reforms as it accelerates digital transformation initiatives.

Investor sentiment and capital market implications

The dividend approval and bonus share issuance may reinforce investor confidence in the bank’s growth trajectory, particularly within Nigeria’s evolving mortgage finance segment.

Banking and financial services stocks have attracted increased investor attention on the Nigerian Exchange in recent months, supported by stronger earnings performance and improving dividend payouts across several listed institutions.

Analysts say institutions capable of balancing profitability, capital adequacy, and asset quality are likely to remain better positioned as financial sector reforms and recapitalisation requirements continue to reshape the banking industry.

Outlook

ITMB’s latest dividend and bonus share approvals underscore the bank’s effort to reward shareholders while strengthening its long-term capital position amid rapid operational growth.

As Nigeria’s mortgage banking sector continues evolving under changing economic and regulatory conditions, lenders with strong balance sheet expansion, disciplined lending practices, and sustained profitability could play a larger role in supporting housing finance development across the country.

The bank’s future performance will likely depend on broader economic conditions, housing market demand, interest rate trends, and its ability to maintain asset quality while expanding credit operations.

READ MORE