LivingTrust Mortgage Bank Plc has released its unaudited first half 2026 financial statement, reporting a pre-tax profit of N133.33 million for the six months ended June 30, 2026. This represents a decline of 76% from the N562.53 million recorded in the corresponding period of 2025.
For the half-year period under review, profit after tax fell to N110.36 million from N562.53 million in the prior-year period. The bank disclosed these financial results on the Nigerian Exchange (NGX) on July 31, 2026, pointing to higher funding costs and operating expenses as major pressures on earnings.
Core Lending and Non-Interest Income Performance
The bank's earnings performance was pressured by a sharp deterioration in net interest income. Interest income declined by 25% to N1.54 billion from N2.05 billion in the corresponding period of 2025, while interest expense increased by 19% to N1.88 billion from N1.58 billion.
As a result, the bank recorded a net interest loss of N346.24 million compared with a net interest income of N463.62 million a year earlier. This decline in core lending profitability was partly offset by strong growth in non-interest income.
Other operating income increased to N1.33 billion from N542.98 million, driven largely by income from placements with banks, which rose to N1.11 billion from N237.19 million. This helped cushion the impact of weaker net interest margins.
Rising Operating Costs and Expenses
Operating costs increased significantly during the period. Personnel expenses rose 40% to N467.23 million from N334.57 million, while depreciation charges more than doubled to N91.85 million.
Although other operating expenses declined to N360.21 million from N475.20 million, total operating expenses still increased by 13% to N983.45 million. Additionally, interest income from Treasury Bills fell 70.20% to N102.18 million from N342.78 million, further impacting the bottom line.
Balance Sheet and Liquidity Position
On the balance sheet, customer deposits expanded strongly to N28.20 billion from N22.74 billion at year-end 2025, reflecting growth in demand and time deposits. Total assets rose 15% to N36.93 billion from N32.21 billion at December 2025.
Loans and advances increased modestly to N17.34 billion from N16.96 billion, while cash and cash equivalents rose 46% to N17.00 billion from N11.61 billion. Despite weaker earnings, shareholders' funds improved to N5.38 billion from N5.28 billion at the start of the year, while total external debt remained flat at N2.10 billion.
Market Reaction and Historical Context
The financial statements disclose a share price of N3.42 as of June 30, 2026, compared with N4.81 in the corresponding period of 2025. The share price closed at N3.80 on Friday, July 31, 2026, representing a 10.14% year-to-date increase from the N3.45 it closed on December 31, 2025.
The H1 2026 decline contrasts with a notable performance for the year ended December 31, 2025, where the company posted a N1.01 billion profit after tax. This reflected an 18.3% increase from the previous year's N854.5 million, supported by gross earnings that rose 74.9% to N6.52 billion in 2025 from N3.73 billion in 2024.
