Abbey Mortgage Bank Plc, a long-standing primary mortgage bank in Nigeria, has officially received regulatory approval from the Central Bank of Nigeria (CBN) to convert into a commercial bank. The bank expects to launch its commercial banking operations in the fourth quarter of 2026.
This approval marks a significant strategic milestone for Abbey Mortgage Bank, enabling it to expand its services beyond mortgage financing into a broader spectrum of commercial banking activities. Preparations for this transition are already in progress, encompassing technology integration, infrastructure expansion, and corporate rebranding.
The bank stated that it will maintain its expertise in real estate financing while also broadening its offerings to include enhanced electronic banking channels, tailored Small and Medium-sized Enterprise (SME) finance products, international trade services, and wealth management solutions.
The transition to commercial banking has been a strategic objective for Abbey Mortgage Bank for several months, supported by strong financial performance. At the Annual General Meeting (AGM) on May 26, 2026, shareholders approved a N164.5 billion private placement. They also authorized the board to raise an additional N100 billion through various equity and debt instruments, pending regulatory approvals.
Chairman Mr. Samuel Oni highlighted the capital raise as crucial for securing a regional commercial banking license and positioning Abbey for future growth. He expressed confidence that by the next AGM, the bank would be operating as a commercial bank with regional authorization.
Abbey Mortgage Bank reported a robust financial performance in 2025, with a pre-tax profit of N3.12 billion, representing a 154.3% increase from N1.22 billion in 2024. Profit after tax rose to N2.16 billion, and earnings per share increased to 21 kobo from 11 kobo. Interest income for 2025 climbed to N18.97 billion, driven by earnings from cash and short-term funds, investment securities, and loans.
The positive momentum continued into 2026, with the first quarter profit reaching N750 million. This figure is a 108.79% increase compared to N359.342 million in Q1 2025 and exceeded the bank's forecast by nearly 100%.
In market performance, Abbey Mortgage Bank's stock closed at N7.05 per share on Tuesday, June 2, 2026, a 4.4% increase from its previous close of N6.75. The stock has gained 10.2% year-to-date, having started the year at N6.40, reflecting investor confidence in the bank's strategic shift and its recent financial results.
