LivingTrust Mortgage Bank reported a 76% collapse in profits for the latest period, a sharp deterioration that occurred even as the lender posted stronger deposit inflows.
The divergence between funding growth and profitability underscores the severe margin compression facing mortgage lenders in Nigeria's current high-rate environment.
Muthoot Finance shares tumbled more than 11% recently, wiping out billions in market value despite a robust start to the fiscal year.
The results from Nairametrics highlight a broader disconnect between asset growth and earnings quality in the banking sector.
While deposit bases are expanding, the cost of funds and credit risk provisioning are eroding net interest margins, leaving lenders with significantly reduced bottom-line performance despite top-line resilience.
This dynamic mirrors recent market reactions to earnings from major lenders in other emerging markets.
Muthoot Finance shares tumbled more than 11% recently, wiping out billions in market value despite a robust start to the fiscal year.