Abbey Mortgage Bank has reported a strong financial performance for the 2025 fiscal year, posting a profit before tax of N3.1 billion, representing a significant 154.32 percent increase compared to N1.2 billion recorded in 2024.
The bank’s audited financial statements highlight a year of accelerated growth, driven by rising interest income, improved operational efficiency, and expanding asset base.
Interest Income Drives Revenue Growth
The lender recorded total interest income of N18.9 billion, marking a 58.71 percent increase from N11.95 billion in the previous year.
A breakdown of the figures shows that earnings were largely supported by cash and short-term funds, which contributed N14.2 billion. Additional income came from investment securities valued at N2.5 billion and loans generating N2.1 billion.
Despite the strong revenue growth, interest expenses also rose significantly to N13.8 billion from N8.5 billion, primarily due to increased obligations to customers.
However, the bank still achieved a net interest income of N5.08 billion, up by 49.81 percent year-on-year.
Profitability Strengthens Across Key Metrics
The improved top-line performance translated into stronger profitability metrics across the board.
Net operating income rose to N6.16 billion, reflecting a 62.66 percent increase from N3.79 billion recorded in 2024. This growth was supported by non-interest income streams, including fees and commissions of N766.8 million and other income of N297.5 million.
After accounting for minimal impairment charges of N15.2 million, the bank maintained strong earnings momentum.
Operating expenses increased moderately to N3.04 billion, driven largely by personnel costs and depreciation. Despite this, profit before tax surged to N3.12 billion.
Following a tax expense of N960.5 million, profit after tax settled at N2.16 billion, more than double the N1.06 billion reported in the previous year.
Earnings Per Share Improves
Shareholders also benefited from the improved financial performance, with earnings per share (EPS) rising to 21 kobo, up from 11 kobo in 2024.
This reflects enhanced value creation for investors and improved profitability per unit of shareholding.
Balance Sheet Expands Significantly
The bank’s balance sheet showed strong expansion, with total assets growing to N165.8 billion from N84.2 billion.
Financial investments accounted for 64.8 percent of the total asset base, indicating a strategic focus on income-generating instruments.
Total liabilities increased to N155 billion from N75 billion, largely driven by customer deposits, which stood at N79.6 billion.
On the equity side, shareholders’ funds rose to N10.78 billion, supported by retained earnings of N2.4 billion.
Market Reaction and Investor Outlook
As of April 1, 2026, the bank’s share price had yet to react significantly to the release of its audited financial results.
However, market performance has remained strong, with the stock delivering over 54 percent returns year-to-date, reflecting sustained investor interest.
Analysts suggest that the impressive financial results could trigger further positive sentiment in the market, particularly if the bank maintains its growth trajectory.
Outlook
With rising interest income, improved profitability, and a strengthened balance sheet, Abbey Mortgage Bank appears well-positioned for continued growth.
The bank’s performance underscores its growing relevance within Nigeria’s financial sector, particularly in the mortgage and housing finance space.
Sustaining this momentum will depend on managing rising costs, optimizing asset allocation, and leveraging opportunities in Nigeria’s evolving real estate market.
