June 3 (THEWILL) — Abbey Mortgage Bank Plc has secured approval from the Central Bank of Nigeria (CBN) to transition from a primary mortgage bank to a commercial bank, marking a significant milestone in the institution’s growth strategy.
The lender disclosed that while regulatory approval has been obtained, full commercial banking operations are expected to commence in the fourth quarter of 2026.
The conversion will enable Abbey to expand beyond its traditional mortgage financing business and offer a wider range of banking services to retail, corporate and institutional customers.
In a statement, the bank described the approval as the beginning of a “transformative era” for its operations. It said preparations for the transition are already underway, including technology upgrades, infrastructure expansion and a corporate rebranding programme ahead of the launch.
Abbey noted that it will continue to leverage its long-standing expertise in real estate financing while broadening its offerings to include digital banking services, SME financing, trade finance, wealth management solutions and enhanced electronic banking channels.
The transition has been supported by a strong capital and earnings position. At its Annual General Meeting held on May 26, 2026, shareholders approved a ₦164.5 billion private placement and authorised the board to raise an additional ₦100 billion through a mix of equity and debt instruments, subject to regulatory approvals.
The chairman of the bank, Samuel Oni, described the capital raise as a critical step toward securing a regional commercial banking licence and driving the institution’s next phase of growth.
Abbey’s financial performance has also strengthened investor confidence.
According to its audited 2025 results, pre-tax profit rose by 154.3 percent to ₦3.12 billion from ₦1.22 billion in 2024, while profit after tax increased to ₦2.16 billion. The momentum continued in the first quarter of 2026, with profit climbing 108.8 percent year-on-year to ₦750 million.
The bank’s shares closed at ₦7.05 on June 2, representing a 10.2 percent year-to-date gain, reflecting positive market sentiment around its commercial banking ambitions and growth prospects.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
