How LivingTrust Mortgage Bank delivered N1trn profit in 2025

LivingTrust Mortgage Bank Plc has crossed the N1 billion in its after-tax profit, driven by balance sheet expansion, higher interest income, and stronger non-interest revenue, according to its unaudited financial statements for the year ended December 31, 2025.

The primary mortgage bank reported an after-tax profit of N1.01 billion, up from N854.5 million in 2024, representing an 18.4 percent year-on-year growth. Gross earnings also rose to N6.2 billion, reflecting improved operating efficiency and revenue diversification.

Interest income surge, despite higher funding costs

LivingTrust’s core earnings engine remained interest income, which increased to N4.49 billion in 2025 from N2.90 billion the previous year. A sharp increase in loans largely supported this growth and advances to customers, which expanded to N17.09 billion, compared with N14.02 billion in 2024.

However, rising funding costs pressured margins. Interest and similar expenses surged to N3.72 billion, nearly three times the prior year’s N1.38 billion, reflecting higher deposit rates and a tighter liquidity environment. As a result, net interest income moderated to N766.9 million, down from N1.52 billion in 2024.

A major driver of LivingTrust’s bottom line in 2025 was non-interest income. Other operating income rose to N1.34 billion, almost doubling the N723.0 million recorded in 2024. This was supported by strong returns from investment income, placements with banks, and treasury bills, which contributed N509.6 million in interest income alone.

Fee and commission income also improved to N186.6 million, up from N102.7 million the previous year, reflecting higher transaction volumes and credit-related fees.

Combined, these streams lifted total operating income to N2.80 billion, compared with N2.35 billion in 2024. The company’s earnings per share rose to N20.23 from N17.09.

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Cost pressures contained amid expansion

Operating expenses increased in line with the bank’s growth, rising to N1.71 billion from N1.44 billion in 2024. Personnel costs totaled N594.4 million, while energy, administrative, and other operating expenses reflected the inflationary pressures affecting the economy.

Despite the higher cost base, LivingTrust maintained profitability, aided by minimal impairment charges of N2.7 million, suggesting improved asset quality and loan performance.

Balance sheet growth underpins earnings

LivingTrust’s total assets expanded by 36 percent to N32.74 billion, up from N24.05 billion in 2024. Customer deposits rose sharply to N22.15 billion, reflecting stronger confidence and aggressive deposit mobilisation, particularly in time deposits.

Equity remained stable at N5.05 billion, supported by retained earnings of N1.40 billion, while statutory and regulatory risk reserves bolstered capital adequacy.

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The bank generated N4.01 billion in net cash from operating activities, supported by higher deposits and income inflows. Cash and cash equivalents closed the year at N12.97 billion, more than double the N5.73 billion recorded in 2024, strengthening liquidity buffers.

Shares of LivingTrust Mortgage Bank closed after the trading day on Monday, January 21, 2025, at N5.36, gaining 55.4 percent year-to-date. The mortgage bank currently has a market capitalisation of N26.8 billion and is the 85th most valuable stock on the NGX.

Chinwe Michael is a financial inclusion advocate and economy journalist who uses compelling storytelling to drive awareness. With a background in Banking and Finance and experience across accounting, media, and education, she applies sharp analysis and attention to detail to every piece. She simplifies complex financial and economy concepts into engaging content for Africa and global audience. Chinwe also doubles as a speaker with global recognition for her expertise.

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