LivingTrust Mortgage Bank Plc has delivered a strong financial performance for the year ended December 31, 2025, recording a profit after tax of N1.01 billion, an 18.3% increase from N854.5 million in the previous year, according to unaudited financial statements released by the financial institution.
The results underscore a period of robust growth for the mortgage lender, characterized by aggressive portfolio expansion and surging revenue streams, even as the bank navigates rising operational costs and heightened credit risk provisions in Nigeria’s challenging economic environment.
The bank’s gross earnings jumped dramatically by 74.9% to N6.52 billion in 2025, nearly doubling from the N3.73 billion recorded in 2024. This remarkable performance was primarily fueled by interest income, which climbed 55% year-on-year to N4.49 billion, reflecting the institution’s strategic pivot toward expanding its mortgage and term loan portfolios.
Perhaps most striking was the bank’s net interest income, which more than doubled—surging 114%—from N357.87 million to N766.94 million. This exceptional growth demonstrates LivingTrust’s ability to effectively monetize its interest-earning assets and capitalize on Nigeria’s mortgage financing opportunities.
“The numbers tell a story of strategic focus and execution,” said one financial analyst familiar with the bank’s operations. “LivingTrust has clearly positioned itself to capture market share in the mortgage space during a period when housing finance remains critically underserved in Nigeria.”
However, the bank’s rapid expansion has not come without growing pains. Impairment losses—provisions set aside for potential loan defaults—increased sharply to N2.72 million in 2025 from just N692,047 the previous year, representing a near fourfold increase.
While these figures remain relatively modest in absolute terms, the uptick signals that LivingTrust is facing elevated credit risk as its loan book expands. Total loans and advances grew by 21.7% to N17.08 billion, an increase of N3.07 billion from 2024 levels.
The increased provisioning appears to be a prudent risk management measure, reflecting the bank’s recognition that rapid lending growth must be accompanied by adequate buffers against potential defaults—particularly important in Nigeria’s volatile economic climate marked by persistent inflation and currency pressures.
Operating expenses rose 18.9% to N1.71 billion during the period, driven primarily by higher personnel costs, depreciation, and amortization—typical expenses associated with institutional expansion. Yet the bank has managed to maintain favorable cost-to-income dynamics, with revenue growth significantly outpacing expense increases.
This disciplined cost management, combined with strong top-line growth, enabled LivingTrust to improve its bottom line despite the dual headwinds of rising operational costs and increased credit provisions.
The bank’s balance sheet expansion tells the broader story of its aggressive growth ambitions. Total assets surged 36.3% from N24.05 billion to N32.74 billion, with the increase primarily driven by growth in loans and advances as well as a dramatic rise in interbank deposits.
Notably, amounts due from other banks more than doubled to N12.02 billion, suggesting improved liquidity management and potentially strategic positioning for future lending activities.
Despite this rapid asset growth, the bank’s equity base remained stable at N5.05 billion, bolstered by retained earnings. This indicates management’s commitment to maintaining adequate capital buffers—a critical consideration for any financial institution in expansion mode.
LivingTrust Mortgage Bank’s 2025 performance positions it as a notable player in Nigeria’s mortgage banking sector, which remains significantly underdeveloped relative to the country’s massive housing deficit, estimated at over 20 million units.
The bank’s ability to achieve strong profitability while simultaneously expanding its loan portfolio demonstrates operational competence. However, several challenges loom on the horizon. Sustaining asset quality as the loan book grows will be critical, particularly if Nigeria’s economic headwinds persist. The Central Bank of Nigeria’s monetary policy stance and broader macroeconomic conditions will also significantly influence the bank’s trajectory.
Furthermore, with total assets now exceeding N32 billion, the institution will need to continue strengthening its capital base to support future growth while maintaining regulatory compliance with prudential requirements set by financial authorities.
As Nigeria’s financial services sector continues to evolve and the demand for mortgage financing grows, LivingTrust’s 2025 results suggest the bank has positioned itself to capitalize on these opportunities—provided it can successfully navigate the inherent risks of rapid expansion in a complex and dynamic market.
The bank has not yet scheduled a date for its annual general meeting, where shareholders will review and approve the audited accounts.
WHAT YOU SHOULD KNOW
LivingTrust Mortgage Bank achieved impressive growth in 2025, with gross earnings nearly doubling (up 74.9%) and profits rising 18.3% to N1.01 billion, driven by the aggressive expansion of its mortgage and lending portfolio. However, this rapid growth comes with a warning sign: impairment losses quadrupled, indicating rising credit risk as the bank’s loan book expanded by 21.7% to N17.08 billion.
