Business and Economy

Abbey Mortgage Bank records N76 million profit in first quarter of 2021

The mortgage industry is recording exciting news as one of the oldest Abbey Mortgage Bank recorded a Profit-Before-Tax of N76 million in Q1 2021, which is a positive deviation from the loss position of N4billion as at December 2020. It also grew its deposit from N14.6 billion to N23.5 billion between 31st December 2020 and 31st March 2020, representing a Q-o-Q increase of 60.6%. Within the same period, the bank grew its asset from N18.5 billion to N27.5 billion, representing a 48.49% growth.

The Bank is repositioned for growth with the recently concluded right issue exercise which will increase the capital of the bank by circa N3 Billion. The huge success of the right issue which was oversubscribed is also an indication of the confidence that the shareholders have in the management and the strategic intention of the bank.

In the last few months, the bank grew its deposit liability to N14 Billion from N6 Billion in 2020 through aggressive sales drive and increased brand visibility. To attain the next phase of growth, the management has identified key areas to drive revenue which includes mortgage/construction finance, treasury related activities and aggressive customer acquisition through the launch of its digital channels.

This result reveals the success of some of the strategic initiatives in the year 2020 which included; a change in senior management/executives, hiring of strategic talents and strengthening of the workforce, write-off of non-performing loans, and an enhanced credit risk management system

With the new top management team led by MD/CEO Mr. Madu Hamman, and the new process and frameworks implemented in the bank, there seems to be a pattern of growth emerging.

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