By Chukwuma Umeorah
Abbey Mortgage Bank Plc has announced plans to raise fresh capital of at least N100 billion to support its transition from a primary mortgage institution to a regional commercial bank, in line with new regulatory capital requirements set by the Central Bank of Nigeria (CBN).
The decision was disclosed in a statement signed by the Company Secretary, Geoff Amaghereonu, following resolutions passed at the bank’s 33rd Annual General Meeting (AGM). This follows shareholders’ earlier approval, granted in January, for the bank to pursue a regional commercial banking licence.
“To achieve this, the board has been authorised to raise not less than N100 billion through a combination of equity and debt instruments. These include rights issues, public offers, global depository receipts, commercial papers, loans, convertible and non-convertible securities, medium-term notes, and bonds,” said the bank’s Managing Director, Mobolaji Adewumi.
He added that the capital raise may be executed in tranches or series, using methods such as book building or other market-driven financial processes, subject to requisite regulatory approvals.
Adewumi stated that the proceeds would be used to explore strategic investments and partnerships to enhance the bank’s balance sheet and position it for broader market penetration.
Abbey reported a strong financial year in 2024, with gross earnings rising by 59.9 per cent to N12.43 billion, up from N7.82 billion in 2023, reflecting increased customer activity and product innovation. Profit Before Tax (PBT) grew by 29.18 per cent to N1.23 billion, compared to N951.34 million in the previous year. Profit After Tax (PAT) also rose by 22.6 per cent, reaching N1.07 billion, up from N871.28 million in 2023.
Adewumi noted that these positive indicators demonstrated the bank’s operational strength, strategic focus, and growing market relevance.
The board has also been empowered to engage professional advisers, secure regulatory consents, and take all necessary steps including the allotment and listing of shares on the Nigerian Exchange Group (NGX) to ensure a seamless transition into regional commercial banking.
In addition to approving the capital raise, shareholders at the AGM also endorsed a final dividend of six kobo per 50 kobo ordinary share for the financial year ended December 31, 2024. The dividend will be payable to shareholders on the register as of May 12, 2025.
Other resolutions passed include the re-election of John Obasa and Christabel Onyejekwe as non-executive directors, the appointment of members to the statutory audit committee for the 2025 financial year, and the approval of directors’ remuneration set at N4 million for non-executive directors and N6.5 million for the chairman.