Abbey Mortgage Bank Plc Forecasts Impressive Q3 Earnings and Achieves Growth in Wholesale and Retail Segments

Abbey Mortgage Bank Plc has set its sights on achieving N1.443 billion in gross earnings during the third quarter of 2023, according to the company's earnings forecast obtained from the Nigerian Exchange Limited (NGX). The mortgage bank also projects N814.531 million in interest income, with estimated profit before tax of N204.33 million and profit after tax of N142.95 million for the specified period. The forecasted taxation stands at N61.38 million.

Significant Traction in Wholesale and Retail Business Segments

Abbey Mortgage Bank recently announced the development of retail and wholesale products to increase market penetration and drive optimal balance sheets. During the company's 31st Annual General Meeting (AGM) held in Lagos, Mr. Bolaji Adewunmi, the Managing Director of the Bank, highlighted the significant traction in the bank's wholesale business segment. He particularly emphasized the success of the Abbey Secured Structured Note, which allowed them to raise over N2.67 billion in collateralized liabilities, contributing to their earnings ratio and differentiating the bank in the market. Additionally, the bank's retail-focused campaign witnessed growth, raising approximately N1.7 billion in new deposits. Adewunmi acknowledged the importance of balancing risk management with efficient balance sheet management and mentioned ongoing efforts to enhance the bank's treasury function, take advantage of market opportunities, and review product pricing and offers for cost-effectiveness.

FY 2022 Financial Performance Highlights

Adewunmi highlighted the financial performance of Abbey Mortgage Bank in the fiscal year 2022, showcasing various achievements. The company reported gross earnings of N5.84 billion, representing a 58.7% growth from N3.68 billion in 2021. Operating income increased by 46.01% from N2.18 billion to N3.18 billion during the same period. The bank achieved a pre-tax profit of N827 million, reflecting a 25.14% increase from the previous year's position of N661 million. Customer deposits also experienced substantial growth, reaching N27.6 billion, a 29.8% increase compared to N21.3 billion in 2021. 

This growth in deposits aligns with the bank's rising perception and status across the industry, further reinforcing customers' confidence. Total assets grew by 15.6%, closing at N39.9 billion from N34.5 billion in 2021. However, loans and advances declined by 16.25% from N6.1 billion to N5.1 billion. On the other hand, investments grew by 13.1% from N1.8 billion to N4.2 billion. Adewunmi attributed the decline in the loan book to the bank's delinquent asset clean-up exercise and its long-term risk management approach. As a result of the bank's earnings performance, shareholders' funds grew by 11%, rising from N6.9 billion in 2021 to N7.6 billion.