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 strategy.
The bank disclosed that it expects to commence full commercial banking operations in the fourth quarter of 2026.
In a statement confirming the approval, Abbey Mortgage Bank described the development as the beginning of a transformative phase in its history, paving the way for expansion beyond mortgage financing into a broader range of banking services.
According to the bank, preparations for the transition are already underway. These include technology integration, infrastructure upgrades and corporate rebranding ahead of the official launch later this year.
While expanding its service offerings, Abbey said it will continue to leverage its long-standing expertise in real estate financing.
The bank plans to introduce a wider range of products and services, including enhanced digital banking solutions, small and medium-sized enterprise (SME) financing, international trade services and wealth management offerings.
Abbey’s transition to commercial banking has been supported by strategic capital-raising initiatives and improved financial performance.
At its Annual General Meeting held on May 26, 2026, shareholders approved a N164.5 billion private placement and authorised the board to raise an additional N100 billion through equity and debt instruments, subject to regulatory approvals.
Speaking at the meeting, the Chairman of the bank, Mr. Samuel Oni, said the capital raise would play a crucial role in securing a regional commercial banking licence and positioning the institution for future growth.
“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 stated.
The bank’s financial performance has also strengthened investor confidence in its expansion plans.
According to its audited 2025 financial statements, Abbey Mortgage Bank recorded a pre-tax profit of N3.12 billion, representing a 154.3 per cent 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 in the previous year.
Interest income climbed to N18.97 billion, driven by earnings from loans, investment securities and short-term funds.
The positive momentum continued into 2026, with the bank reporting a first-quarter profit of N750 million. The figure represented a 108.79 per cent increase compared to N359.34 million recorded in the corresponding period of 2025.
The first-quarter performance also exceeded the bank’s forecast by nearly 100 per cent.
Investor sentiment towards the stock has remained positive amid the transition plans.
Abbey Mortgage Bank shares closed at N7.05 on Tuesday, June 2, 2026, representing a 4.4 per cent gain from the previous closing price of N6.75.
Since the beginning of the year, the stock has gained 10.2 per cent, rising from N6.40 per share.
The bank said it will announce details regarding its official launch date, new corporate identity and product rollout in the coming months.
Once commercial banking operations commence, Abbey will be able to offer a full range of financial services, including retail banking, corporate banking, digital payment solutions, trade finance, SME lending and wealth management products.
Management noted that the transition is aimed at enhancing customer experience through broader electronic banking platforms and a more diversified portfolio of financial products.
Industry analysts view Abbey’s upgrade as part of a growing trend within Nigeria’s financial sector, where institutions are pursuing expansion, innovation and consolidation to meet evolving customer needs and deepen financial inclusion.
