INFINITY TRUST MORTGAGE BANK PLC: JUST LIKE CONCRETE

If the trend it clocked in 2014 financial year is anything to go by, then Infinity Trust Mortgage Bank PLC  is now set like concrete to end 2015 with still rather strong double digit profit margin but short of 2014 close.
According to the nine months figures to September released recently, Infinity Trust Mortgage may settle for less gain on each Naira income if its battle  with personnel cost continues to be lost; income from non-core business continues to drop and depreciation and write off of intangible assets remains relatively high.
The company had by September recorded a healthy 31.4 per cent increase in interest income which was made more juicy by only 8.41 per cent rise in interest expense but its total income increased by only 9.03 per cent to N555.2m from N509.2m.
Principally, this was more because income from other operations dropped by 23.9 per cent to N148.5m from N195.1m even though fees and commission rose by 26.2 per cent to N45.7m from N36.2m.
Then Infinity Trust Mortgage' profit margin was depressed by 73.8 per cent increase in personnel expenses from N45.8m to N79.6m and 87 per cent increase in write off of intangible assets ( like valued goodwill etc). There was also 15.7 per cent increased provision for depreciation of assets hence in the end, total operating expenses closed the half year 12.3 per cent up.
Naturally, with such growth in expenses ahead of income growth, decrease in profit margin alone could be the end result. In this case, it dropped from 40 per cent by September 2014 to 38.4 per cent .
IN SUM:
* In view of the fact that by September in 2014, above 60 per cent of the company's expenses, income and of course, year end profit had been achieved, the chances are the concrete mixture for the full is just waiting to set fully. That is, if 2014 trend holds.
* One move that could  make a difference is if any attempt is made in the last quarter to reduce personnel cost and if, per chance, intangible asset write-off is nearly over.

Comments

Post a Comment

Popular posts from this blog

2018: TWO BLOWS TO UNITED CAPITAL PLC.

When a child who in a previous examination scored 80%, comes home with a new report in which he now scores 67.2%, the parents have a right to sit him down and ask how come. So it must be between Nigeria's United Capital Plc and its discerning shareholders since the release of the company's 2018 audited figures. In 2018, all said and done, says the annual report, United Capital ended with 67.2 % profit margin compared to 80.2% in 2017. How come? What comes across from the figures was that the company received 2 blows to the jugular in 2018: Sharp drops in Investment income and fair value gain. Investment income dropped by 10.8% to N4422.8m from N4965.2m while fair value on financial assets plunged by 79.7% to N6.173m from 2017's N30.387m. In view of both drops, the group's gross earnings grew by only 33.9% to N9259.4m despite strong growths in net trading income, and net operating income leap to N757.5m from N143.5m  Other income streams ended with single digit increase....
Read more

KENYA AUCTIONS Ksh 13.84bn Treasury Bonds.

The Central Bank of Kenya (CBK) will from Tuesday December 18 to 27th 2018_ auction Ksh 13.84bn worth of fixed income Treasury Bonds with issue date December 17, 2018. According to official statement from the Director of Financial Markets Irene Njiru on Monday December 17, auction will continue throughout the stated period or close once the target money to be raised is reached, whichever comes first. Bid value will be paid for at most by 2pm December 31, 2018 while auction results will be made public on December 28, 2018 after the scheduled closing date. The bonds are being issued at 12.502% fixed interest at an adjusted average price of Ksh 100.468 for Ksh 100 bond. However, price payable after auction results publication will be average of successful bid prices based and allotment will be on first come first served basis. Meanwhile, the monetary operations and debt management department has released the interest payment schedule for 13 Treasury Bonds due January and February 2019. Th...
Read more

NAIROBI SE's HIGH PRICED EQUITIES.

In the wake of Nigeria's high priced quoted companies posted in this blog a while ago, Henates took a look to at Nairobi Securities Exchange June 23 official list to identify its high priced equities and the outcome was interesting too. Of the 66 companies quoted on the market by June 23, 15 or 22.7% were valued averagely at above 30 times nominal value. A word of caution though: There are two clear differences between the Nigerian stock market list and that of Nairobi: In the Nigerian one most listed companies have par or nominal value of N0.50 as is there is an implied agreement on this. On the other hand, at Nairobi most of the equities do not share common par value, they differ greatly. Then another thing, Nigerian equities are not valued below par, Nairobi ones can and many are so valued. Of the top 15 high priced equities at the Nairobi market, Safaricom topped with because by June 23, at 23.25 Ksh average price, it was valued 465 times its nominal value of just 0.0...
Read more