By Kayode Ogunwale

L-R: Chairman Infinity Trust Mortgage Bank PLC, Mrs Okwa Ene Iyana, Chief Executive Officer of Nigerian Exchange Limited Mr Jude Chiemeka and Acting Managing Director/Chief Executive Officer of Infinity Trust Mortgage Bank PLC, Mrs. Ngozi Chukwu during the facts behind the figures presentation of Infinity Trust Mortgage Bank PLC at the Nigerian Exchange in Lagos.

 

Infinity Trust Mortgage Bank (ITMB) Plc today announced its intention to raise an additional N50 billion through a private placement. This decision comes as part of the bank’s strategy to transition into a digital commercial bank and expand its services.

Speaking during the facts behind the figure presentations held at the Nigerian Exchange Limited in Lagos, the Chairman of ITMB Mrs. Okwa Ene Iyana, emphasized that the capital raising exercise reflects the management’s proactive approach to capitalise on emerging opportunities and extends its influence as a driver of financial inclusion. She highlighted the significance of this move in solidifying the bank’s leading position in the sector and strengthening shareholder confidence in ITMB’s potential, workforce, and prospects.

“As we navigate through the complexities of its dynamic industry, we remain steadfast in our mission to provide innovative, customer-centered solutions, to foster sustainable growth and create long-term value for all our stakeholders.

“Our unwavering commitment to excellence, integrity, and transparency has been the compass of our success to date and we will continue to uphold these values.”

She, however, added that since IITMB was listed on NGX in 2013, the management has maintained dividend payout to shareholders in the fifth month of every year.

“It will interest you to note that this track record began before ITMB was listed on NG, it has become a culture that we hold very dear, and we are committed to ensuring that this will continue,” she said.

The Acting Managing Director/Chief Executive Officer of ITMB, Mrs. Ngozi Chukwu, emphasised that the primary objective of the capital raising exercise is to facilitate the transformation of the bank into a digital commercial bank, with a specific focus on providing financial support to essential sectors and addressing the challenges faced by Micro-Small and Medium Sized Enterprises (MSMEs) and unbanked individuals.

Mrs. Chukwu highlighted the findings of the 2022 sectorial allocation of bank credit by the Central Bank of Nigeria (CBN), which revealed that there is a substantial number of MSMEs which is over 39 million facing limited access to finance for business growth.

She noted that merely 0.3 percent of commercial banking credit is extended to this group of business owners. In comparison, over 75 percent of MSMEs rely on internal capital for growth, considered largely inadequate and inefficient.

In response to this research, Mrs. Chukwu stated that ITMB will harness technology and digital tools to efficiently reach target customers, leading to lower interest rates and higher returns through increased transaction volumes. She emphasized the critical role of technology in achieving these aims.

“Our target customers will be MSMEs, unserved and underserved by microfinance banks and commercial banks.”

She highlighted six strategic building blocks: driving financial inclusion, deep industry knowledge, data and technology, product innovation/customisation, partnerships and cost efficiencies.

On driving financial inclusion, she explained that the company tends to provide financial services to underserved and underbanked individuals to align with CBN’s strategic goals of increasing the financial inclusion rate to 80 percent.

She explained further the ITMB intends to create digital banking, transportation/logistics, asset management, healthcare & pharmaceutical, real estate/green finance, agriculture, foreign exchange, women and youth empowerment, and real sector financing with sources of value creation with the additional capital.

Speaking earlier, the Chief Executive Offer, Nigerian Exchange Limited, Mr. Jude Chiemeka stated that despite the prevailing economic challenges the Exchange acknowledged and commended the effort of Infinity Trust Board and management in enhancing its operations, promoting business continuity and restoring investor confidence.