Abbey Mortgage Bank gets regulatory nod for commercial banking operations

By Chukwuma Umeorah

Abbey Mortgage Bank Plc has received regulatory approval from the Central Bank of Nigeria (CBN) to commence operations as a commercial bank, a development that advances the institution’s ongoing transformation strategy and comes weeks after shareholders approved plans to raise up to N164.5 billion in fresh capital to support its expansion.

The bank disclosed that the approval paves the way for its transition from a primary mortgage institution to a commercial bank, enabling it to broaden its operations beyond mortgage financing into retail, corporate, digital and other financial services segments.

The approval marks a key milestone in the bank’s growth plans and follows its recent capital raising initiative approved by shareholders at the institution’s 34th Annual General Meeting (AGM). The capital programme was designed to strengthen the bank’s balance sheet, support regulatory requirements and position it for a larger role within Nigeria’s banking industry.

With the commercial banking licence secured, Abbey is expected to expand its service offerings to include small and medium-scale enterprise (SME) financing, trade services, electronic banking solutions and wealth management, while retaining its traditional focus on real estate financing.

Managing Director and Chief Executive Officer, Mobolaji Adewumi, said the bank’s next phase will prioritise digital transformation and service delivery expansion. “Our next phase is centered on delivering seamless and digitally driven banking experiences that eliminates the traditional barriers to premier financial services. Shaping the future means building a resilient institution that is as agile as it is reliable, while ensuring that every stakeholder benefits meaningfully from our growth and expansion,” he said.

The bank said preparations are already underway to facilitate a smooth transition, including technology upgrades, infrastructure expansion and corporate rebranding initiatives ahead of the commencement of commercial banking operations. It added that commercial banking activities are expected to begin in the fourth quarter of 2026, while details of its new corporate identity, product offerings and official launch date will be announced subsequently.

The transition is also expected to strengthen the bank’s position in the capital market, where investors have closely monitored its growth strategy, particularly following the approval of its N164.5 billion capital raising programme. Market analysts say the move could enhance the institution’s earnings diversification and long-term growth prospects by providing access to a wider customer base and additional revenue streams.

The bank said the transition would support improved customer experience through expanded financial solutions and enhanced digital banking channels as it prepares for its next phase of operations.