Abbey Mortgage Bank Plc has secured regulatory approval from the Central Bank of Nigeria (CBN) to convert into a commercial bank, marking a significant milestone in the institution’s growth journey and positioning it for broader participation in Nigeria’s banking sector.
The approval paves the way for the bank to commence commercial banking operations in the fourth quarter of 2026, enabling it to expand beyond its traditional mortgage financing business into a full range of banking services.
In a statement announcing the approval, Abbey Mortgage Bank described the development as the beginning of a “transformative era” for the institution. The bank disclosed that preparations are already underway, including technology upgrades, infrastructure expansion, and corporate rebranding efforts ahead of the official launch.
While broadening its scope, the bank said it would continue leveraging its expertise in real estate financing while introducing enhanced electronic banking services, tailored financing solutions for small and medium-sized enterprises (SMEs), international trade services, and wealth management offerings.
Capital Raise Supports Expansion Plans
Abbey’s transition to commercial banking has been supported by strategic capital-raising initiatives and strong financial performance.
At its Annual General Meeting (AGM) held on May 26, 2026, shareholders approved a N164.5 billion private placement and authorized the board to raise an additional N100 billion through a combination of equity and debt instruments, subject to regulatory approvals.
Speaking at the AGM, Chairman Samuel Oni said the capital raise was central to the bank’s ambition of obtaining a regional commercial banking licence and accelerating its growth strategy.
“By the time we are meeting next year, by the grace of God, we will be talking about Abbey Plc as a commercial bank with regional authorisation,” Oni said.
Strong Financial Performance
Abbey Mortgage Bank delivered one of its strongest financial results in recent years, providing a solid platform for its transition.
According to its audited 2025 financial statements, the bank recorded a pre-tax profit of N3.12 billion, representing a 154.3% increase from N1.22 billion reported in 2024.
Profit after tax rose to N2.16 billion, while earnings per share increased to 21 kobo from 11 kobo. Interest income climbed to N18.97 billion, supported by earnings from cash and short-term investments, investment securities, and loan assets.
The positive momentum continued into 2026, with first-quarter profit reaching N750 million, up 108.79% from N359.34 million recorded in the corresponding period of 2025 and nearly double the bank’s projected earnings.
Abbey Mortgage Bank’s shares closed at N7.05 on June 2, 2026, reflecting a 4.4% gain from the previous day’s closing price of N6.75.
The stock has gained 10.2% year-to-date, rising from its opening price of N6.40 at the start of the year, as investors respond positively to the bank’s expansion plans and improving profitability.
What the Transition Means
Once commercial banking operations commence, Abbey will be able to offer a broader suite of financial services, including retail banking, corporate banking, digital payment solutions, trade finance, SME lending, and wealth management products.
The transition is expected to strengthen the bank’s competitive position and reflects the broader trend of consolidation, innovation, and financial inclusion efforts within Nigeria’s banking industry.
