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Chuks Udo Okonta
Nigeria’s leading Mortgage Institution Abbey Mortgage Bank has retained its BBB- rating, positioning itself for more business opportunities and profitability.
According to Augusto & Co., a renowned credit rating agency, “the rating reflects Abbey Mortgage Bank’s good capitalization, satisfactory liquidity profile, experienced management team, and low leverage”. Considering the challenging business environment characterized by weak purchasing power, high inflation, and its adverse impact on households and businesses, a higher rating was impeded by the bank’s high non-performing loan (NPL) ratio which impairs asset quality and exposures to unrated counterparties.
“This rating is a testament to the hard work and dedication of our entire team and a reflection of our commitment to sound financial practices, effective risk management, and strategic decision-making.” – said Mobolaji Adewumi, Managing Director of the bank. He went on to state, “We owe these achievements to the trust and support of our valued customers and shareholders and deeply appreciate their confidence in us. As we move forward, I am optimistic that we will continue to uphold the highest standards of ethics and regulatory compliance, whilst providing exceptional services and innovative banking solutions to our customers.
Despite economic challenges, Abbey Mortgage Bank has continued its impressive profitable trajectory, generating record revenue in the third quarter of this year, with a pre-tax profit of N776mn, an increase from its 2022 position of N771mn.
With this new rating, increased profitability and share pricing, as well as the reduction of its share premium, Abbey is poised to end the year on a positive note.
The bank remains dedicated to being at the forefront of industry trends, adapting to evolving customer needs, and embracing digital advancements to improve its operational efficiency and customer experiences.
