LivingTrust Mortgage Bank Plc has delivered a strong financial performance for the year ended December 31, 2025, posting a profit after tax of N1.01 billion, representing an 18.3% increase compared to the N854.5 million recorded in the previous year.
The bank’s unaudited financial statements indicate robust growth in revenue and core income lines, supported by an expanding loan portfolio and improved interest earnings, even as operating expenses and credit impairment charges increased during the period.
Strong revenue expansion drives earnings growth
LivingTrust’s gross earnings surged by 74.9% year-on-year to N6.52 billion, up sharply from N3.73 billion in 2024. This significant expansion reflects the bank’s strategic focus on scaling its mortgage and term loan offerings, which remain the primary drivers of income.
Interest income rose to N4.49 billion, marking a 55% increase from the prior year. The improvement was largely attributed to higher volumes of interest-earning assets, particularly mortgage loans and structured term facilities. This growth underscores the bank’s ability to deepen its presence in Nigeria’s housing finance market despite broader economic pressures.
Net interest income also recorded a notable increase, more than doubling to N766.94 million in 2025, compared with N357.87 million in 2024. The 114% jump highlights improved asset yields and effective balance sheet deployment, reinforcing the bank’s core profitability.
Credit provisioning rises amid loan book expansion
As the loan portfolio expanded, impairment losses increased to N2.72 million, up from N692,047 in the previous year. While the absolute value of impairment charges remains modest, the rise reflects a more cautious provisioning stance in response to growing credit exposure.
Total loans and advances grew by 21.7% to N17.08 billion, an increase of over N3 billion year-on-year. The higher impairment charges are viewed as a prudent measure to mitigate potential credit risks associated with rapid portfolio growth, particularly in the mortgage and term loan segments.
Although asset quality remains stable, management will need to maintain close oversight as lending activities continue to scale, especially in an environment marked by elevated interest rates and household income pressures.
Profitability sustained despite rising costs
Operating expenses rose by 18.9% to N1.71 billion, driven mainly by higher personnel costs, depreciation, and amortisation expenses associated with business expansion. Despite these cost pressures, LivingTrust successfully translated its revenue growth into higher bottom-line performance.
The combination of rising income and controlled cost growth enabled the bank to improve profitability, with the profit after tax margin remaining resilient. This reflects disciplined cost management and operational efficiency across its core banking activities.
Balance sheet growth strengthens financial position
LivingTrust’s balance sheet expanded significantly in 2025, with total assets increasing by 36.3% to N32.74 billion, up from N24.05 billion in the prior year. The growth was driven primarily by higher loans and advances, alongside a substantial increase in balances due from banks, which more than doubled to N12.02 billion.
Shareholders’ equity remained stable at N5.05 billion, supported by retained earnings. The stable equity base, combined with strong asset growth, provides a solid foundation for further expansion, although efficient capital management will be critical as the bank scales its operations.
Market performance and investor sentiment
LivingTrust’s stock performance reflects renewed investor confidence following the release of its 2025 financial results. While the stock closed 2025 at N3.45, representing a 21% year-to-date decline, momentum has shifted positively in 2026.
The stock has gained 55.4% year-to-date, and following the publication of the unaudited results, it recorded a 9.8% intraday gain, closing at N5.36, up from N4.88. The strong price reaction suggests that investors are responding positively to the bank’s earnings growth and balance sheet expansion.
Dividend outlook and future prospects
With earnings per share growing by 18.3%, market participants are increasingly optimistic about the possibility of a higher dividend payout. LivingTrust has a history of progressively rewarding shareholders, having increased its dividend to 8 kobo in 2024, up from 3 kobo in 2023.
Looking ahead to 2026, the bank appears well-positioned for continued growth, supported by its expanding mortgage portfolio and improving income profile. Key priorities will include maintaining asset quality, enhancing cost efficiency, and addressing structural issues such as free float levels over the medium term.
If effectively managed, LivingTrust Mortgage Bank is likely to sustain its strong momentum and further strengthen its position within Nigeria’s mortgage banking sector.
Emmanuel Bassey is a Financial Expert that has worked in the Banking and Finance Industry for over 15+ years across different banks in Nigeria
