Infinity Trust Mortgage Bank Plc has announced plans to expand into a digital commercial bank as it revealed plans to raise N50 billion through private placement.
The Company’s ‘Facts Behind the Presentations’ held in Lagos, the Chairman of Infinity Trust Mortgage Bank, Mrs Okwa Iyana said the capital raising exercise is the management strategic move to capitalise on new opportunities, expand its reach as a catalyst for financial inclusiveness and to further entrench its position as a leader in the sector.
She explained that the move is a demonstration of a resounding vote of confidence by shareholders on the bank’s potential, people and prospects.
Iyana added that since the Company was listed on NGX in 2013, the management has maintained dividend payout to shareholders in the fifth month of every year.
Speaking further on the capital raising exercise, the Acting Managing Director/Chief Executive Officer, Infinity Trust Mortgage Bank, Mrs Ngozi Chukwu said the aim is to transform to a digital commercial bank with focus on providing finance to essential sectors and to deal with other challenges faced by Micro-Small and Medium-sized Enterprises (MSMEs) and unbanked individuals in general.
She revealed the 2022 sectorial allocation of bank credit of Central Bank of Nigeria (CBN) research that shows that there is a large pool of MSMEs (over 39 million) with limited access to finance to grow their business.
She noted that only 0.3 percent of commercial banking credit is availed to this group of business owners and over 75 percent of MSMEs rely on internal capital to grow which is considered largely inadequate and inefficient.
“The Bank will leverage on technology and digital tools to reach the target customers in an efficient manner that would lead to lower interest rates and higher returns through volume of transactions. So, technology here is very key for us.
“Our target customers will be MSMEs, unserved and underserved by microfinance bank and commercial banks.”
She highlighted six strategic building blocks that include: driving financial inclusion, deep industry knowledge, data and technology, product innovation/customisation, partnerships and cost efficiencies.
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 said further the Bank 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.
Also, the chief executive officer, 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.
“Their commitment and dedication to these goals reflects their resilience and adaptability, and these are essential in today’s market environment,” he said.
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