Central Bank of Nigeria (CBN) has approved Abbey Mortgage Bank Plc’s conversion to a regional commercial bank, clearing the lender to offer full banking services beyond mortgages.
The approval was announced in a regulatory filing to the Nigerian Exchange. The bank has also changed its name to Abbey Bank Plc, following a shareholder resolution at an Extraordinary General Meeting on January 24, 2025.
The upgrade comes on the back of strong 2025 results. Abbey Bank reported profit before tax of N3.1bn, up 154.32% from N1.2bn in 2024. Profit after tax rose 102.67% to N2.16bn from N1.06bn, driven by higher interest income and improved efficiency.
Key 2025 performance highlights from Abbey Bank Plc include;
Interest income which is over 58.71% to N18.97bn, with cash and short-term funds contributing to N14.2bn. Net interest income is 49.81% to N5.08bn despite interest expenses rising to N13.8bn and the total assets nearly doubled, 96.9% to N165.8bn, led by financial investments
Customer deposits have also jumped to N79.6bn, pushing total liabilities to N155bn
and shareholders’ funds grew to N10.78bn from N9.2bn
Operating expenses rose 18.70% to N3.04bn due to staff costs and expansion, but profitability stayed resilient.
For Abbey Bank, the CBN approval and name change means the bank can now do way more than mortgages. As a Primary Mortgage Bank, Abbey was limited to home loans, real estate finance, and related services.
As a Regional Commercial Bank, it can now take deposits from individuals and businesses, offer current/savings accounts, loans, overdrafts, trade finance, and run digital banking, cards, mobile money, POS, agency banking. Abbey Bank can also compete directly with the likes of Wema, Sterling, Union Bank regionally.
The conversion also means bigger responsility on Abbey Bank but also offers bigger growth potential, but tougher competition.
The upgrade signals strength to investors and regulators. The 154% PBT jump to N3.1bn and 96.9% asset growth in 2025 showed Abbey was ready. CBN only grants these upgrades when capital, governance, and risk controls pass muster. For shareholders, “Abbey Bank Plc” sounds broader than the “Abbey Mortgage Bank Plc”. That rebrand and license should boost market perception and possibly share price on NGX.
Analysts agree the regional commercial bank license positions Abbey Bank to diversify revenue, expand its customer base, and compete more broadly in Nigeria’s banking sector. The move also reflects the industry’s shift toward larger operational footprints and stronger capital bases to meet new regulatory demands.
