Executive Summary
Livingtrust Mortgage Bank PLC released its unaudited financial statements for the period ended September 30, 2026. As a specialist mortgage institution licensed by the Central Bank of Nigeria (CBN), the bank’s Q3 performance highlights a fascinating divergence: while top-line interest income and net margins faced severe headwinds, robust non-interest income and solid balance sheet expansion in customer deposits helped cushion the bottom line, keeping profitability in positive territory.
Key Financial Highlights (Q3 2026 vs. Q3 2025)
| Financial Metric | September 2026 (₦’000) | September 2025 (₦’000) | Year-on-Year Change (%) |
| Gross Earnings | 4,833,886 | 5,118,616 | -5.56% |
| Net Interest Income | (465,431) | 712,260 | -165.35% |
| Profit Before Tax (PBT) | 246,851 | 800,028 | -69.14% |
| Profit After Tax (PAT) | 212,749 | 755,009 | -71.82% |
| Basic Earnings Per Share (Kobo) | 4.25 | 15.10 | -71.85% |
| Total Assets | 37,032,372 | 32,207,660 (Dec 25) | +14.98% |
| Deposits from Customers | 27,289,965 | 22,736,491 (Dec 25) | +20.02% |
| Loans and Advances to Customers | 16,789,884 | 16,959,319 (Dec 25) | -1.00% |
Editorial & News Analysis
1. The Compression of Net Interest Income
The most striking story in Livingtrust Mortgage Bank’s Q3 statement is the plunge in Net Interest Income down to negative territory at (₦465.43 million), compared to a positive ₦712.26 million in the corresponding period of 2025.
The Driver: While interest income remained substantial at ₦2.48 billion (9-month cumulative), surging interest expenses—pegged at ₦2.94 billion—outpaced earnings. This reflects aggressive funding costs in the macro-environment, where high interest rates and competitive deposit mobilization have inflated the cost of funds for financial institutions.
2. Non-Interest Revenue as the Savior
To offset the negative net interest margin, the bank leaned heavily on non-interest streams. Other Operating Income surged impressively to ₦2.27 billion for the 9-month period (up from ₦1.38 billion in September 2025). This cushion was critical in ensuring that total operating income remained positive at ₦1.89 billion, shielding the bank from a deeper operational loss.
3. Balance Sheet Expansion and Deposit Growth
Despite macro headwinds affecting profitability, public and customer confidence in the institution remains robust:
Customer Deposits grew by 20.02%, jumping from ₦22.74 billion in December 2025 to ₦27.29 billion by September 2026, driven largely by increases in term and demand deposits.
Total Assets expanded by 14.98% to close at ₦37.03 billion, up from ₦32.21 billion at the close of the previous financial year.
Meanwhile, Loans and Advances remained tightly managed, edging down slightly by 1.00% to ₦16.79 billion, indicating a more cautious, risk-averse credit underwriting posture amid tightening monetary conditions.
4. Bottom-Line Impact & Shareholder Returns
Profitability contracted significantly year-on-year, with Profit Before Tax (PBT) dropping 69.14% to ₦246.85 million, and Profit After Tax (PAT) falling 71.82% to ₦212.75 million. Consequently, Basic Earnings Per Share (EPS) dropped from 15.10 Kobo down to 4.25 Kobo.
Strategic Outlook for Investors
Managing Cost of Funds: Livingtrust’s immediate operational hurdle is optimizing its liability mix. To restore net interest margins, management must focus on lower-cost retail deposits and re-pricing asset yields effectively.
Sustaining Non-Core Revenue: The impressive growth in other operating income proves the bank’s agility in diversifying revenue streams away from traditional lending. Sustaining this momentum will be vital heading into the final quarter.Asset Quality: With credit loss expenses contained at ₦170.49 million and a low non-performing loan exposure relative to total assets, asset quality remains relatively resilient, supported by prudent risk management.
