The decision, taken at the bank’s 33rd Annual General Meeting held on May 28, 2025, was disclosed in a statement signed by Geoff Amaghereonu, the company secretary.

According to the statement, the bank will raise the fund through various instruments including issuance of shares, commercial papers, loans, convertibles and non-convertibles and medium-term notes.

The capital raise will enable the bank to meet the Central Bank of Nigeria’s (CBN) minimum capital requirements of N50 billion for commercial banks with regional authorisation.

Abbey Mortgage Bank plans to deploy a range of strategies such as book-building and other financial methods to secure the fund while ensuring full compliance with regulatory guidelines.

This follows the CBN’s March 2024 announcement, which increased the minimum capital requirement for banks.

Under the new rules, commercial banks with international authorisation must now hold N500 billion, national banks N200 billion, and regional banks N50 billion.

The mortgage firm’s net profit rose by 11.79 percent to N856.26 million in December 2023 from N766.19 million as of December 2022.

Interest income spiked by 49.27 percent to N49.27 billion in December 2023 from N4.83 billion the previous year. However, fees and commission income were down 83.15 percent to N395.08 million.

The Bank was able to reduce costs to bolster efficiency as total operating expenses were reduced by 1.70 percent to N2.31 billion even amid a challenging environment.

Over the past three years, Abbey Mortgage has been able to reduce the NPLs, which justifies good asset quality in an industry where sector players are grappling with deteriorating asset quality.

The Bank has read the handwriting on the wall that the regulator will jerk up industry minimum capital requirements as it is ready for recapitalization. “Abbey is already working towards that, to ensure that at every point in time, we are above whatever minimum capital requirement is. The last capital raise was in 2020 where we raised circa N3 billion,” said Mobolaji Adewumi, managing director and CEO of Abbey Mortgage Bank.

“According to the last review, we are already at eight percent, which is far below what you will get from most mortgage banks. “The CBN has said that the banks would have to recapitalize and we are expecting that this will not just affect the commercial banks, it will affect the microfinance banks and even the mortgage banks.“Abbey is already working towards that, to ensure that at every point in time, we are above whatever the minimum capital requirement is. The last capital raise was in 2020 where we raised circa N3 billion,” said Adewumi.

According to Augusto & Co., a renowned credit rating agency, “the rating reflects Abbey Mortgage Bank’s good capitalization, satisfactory liquidity profile, experienced management team, and low leverage”.

Considering the challenging business environment characterized by weak purchasing power, high inflation, and its adverse impact on households and businesses, a higher rating was impeded by the bank’s high non-performing loan (NPL) ratio which impairs asset quality and exposures to unrated counterparties.

“This rating is a testament to the hard work and dedication of our entire team and a reflection of our commitment to sound financial practices, effective risk management, and strategic decision-making”, said Mobolaji Adewumi, Managing Director of the bank.

He went on to state, “We owe these achievements to the trust and support of our valued customers and shareholders and deeply appreciate their confidence in us. As we move forward, I am optimistic that we will continue to uphold the highest standards of ethics and regulatory compliance, whilst providing exceptional services and innovative banking solutions to our customers.

Despite economic challenges, Abbey Mortgage Bank has continued its impressive profitable trajectory, generating record revenue in the third quarter of this year, with a pre-tax profit of N776mn, an increase from its 2022 position of N771mn.

With this new rating, increased profitability and share pricing, as well as the reduction of its share premium, Abbey is poised to end the year on a positive note.

The bank remains dedicated to being at the forefront of industry trends, adapting to evolving customer needs, and embracing digital advancements to improve its operational efficiency and customer experiences.