CBN Approves Abbey Mortgage’s Conversion To Regional Commercial Bank

The Central Bank of Nigeria (CBN) has approved the conversion of Abbey Mortgage Bank Plc from a Primary Mortgage Bank to a Regional Commercial Bank.

The approval, announced by the bank in a regulatory filing to the Nigerian Exchange Limited (NGX), paves the way for the lender to operate as a regional commercial bank and offer a broader range of banking services beyond mortgage financing.

Consequently, the bank has also changed its corporate name from Abbey Mortgage Bank Plc to Abbey Bank Plc, following a resolution passed by shareholders at an Extraordinary General Meeting held on January 24, 2025.

The development comes amid financial performance by the institution, which reported substantial growth in profitability and assets for the 2025 financial year.

According to its audited financial statements filed with the NGX, Abbey Bank recorded a profit before tax of N3.1bn in 2025, representing a 154.32 per cent increase from the N1.2bn reported in the previous financial year.

Profit after tax rose by 102.67 per cent to N2.16bn from N1.06bn in 2024, underscoring the bank’s improved earnings capacity and operational efficiency.

The lender’s earnings growth was driven largely by increase in interest income, which rose by 58.71 per cent to N18.97bn from N11.95bn a year earlier.

A breakdown of the results showed that income generated from cash and short-term funds contributed N14.2bn, while investment securities and loans accounted for N2.5bn and N2.1bn respectively.

Although interest expenses increased to N13.8bn from N8.5bn, reflecting higher funding costs and growth in customer deposits, net interest income still advanced by 49.81 per cent to N5.08bn compared with N3.40bn in the preceding year.

The bank also reported a strong improvement in non-interest earnings, with net operating income rising by 62.66 per cent to N6.16bn from N3.79bn in 2024.

Fee and commission income contributed N766.8m, while other operating income amounted to N297.5m.

Despite rising operating costs, profitability remained resilient. Operating expenses increased by 18.70 per cent to N3.04bn, largely due to higher personnel expenses as well as depreciation and amortisation charges associated with business expansion and operational activities.

Total assets surged by 96.9 per cent to N165.8bn from N84.2bn in 2024, supported primarily by growth in financial investments, which accounted for nearly two-thirds of the asset base.

Total liabilities increased to N155bn from N75bn, driven largely by a substantial rise in customer deposits, which stood at N79.6bn at the end of the financial year.

Shareholders’ funds grew to N10.78bn from N9.2bn in the previous year, supported by retained earnings of approximately N2.4bn.

Industry analysts say the conversion to a regional commercial bank is expected to position Abbey Bank for broader market participation, enabling it to diversify revenue streams, expand its customer base, and compete more effectively within Nigeria’s banking sector.

The approval also aligns with the ongoing transformation within the Nigerian financial services industry, where institutions are seeking larger operational footprints and stronger capital bases to support growth and meet evolving regulatory requirements.