Abbey Mortgage Bank Grows Gross Earnings By 142% In Full Year 2021

Abbey Mortgage Bank, one of the primary national Mortgage banks in Nigeria has presented its 2021 Annual Report and Accounts to the company’s Shareholders, growing gross earnings by 142% to N3.68 billion in 2021, higher than N1,52 billion recorded in same period of 2020.

Whilst the company’s operating income grew by 104% to N1.99 billion, up from N0.99 billion figure of the previous year, the operating expenses increased by 9% to N1.52 billion higher than N1.39 billion recorded in 2020, “reflecting management’s optimization of expenses while achieving improved staff welfare, increased manpower and business expansion activities.”

Presenting details of the results in his statement at the company’s 30th Annual General Meeting (AGM) In Lagos recently, Chairman, Board of Directors, Mazi Emmanuel Kalu, expressed happiness on the company’s performance for the year. “I am extremely proud of the progress we made in the last 12 months and the outcome that continues to validate our strategic direction.”

He said “Two years ago, the management of Abbey with the support of the Board made some strategic decisions towards addressing legacy delinquent assets…. We ramped up recovery effort which led to a net write-back off N180 million against a net credit loss of N3.8 billion in 2020, while Pre-Tax Profit at the end of the year stood at N661 million, lower than N2.4 billion figure of 2020.

“Our loans and advances grew by 28% to N6.2 billion during the review period as against N4.7 billion recorded in the same period in 2020, while customers, deposits grew by 45.4% to N21.2 billion in 2021, up from N14.6 billion reported in 2020.

“These, according to the Chairman, were “driven by growth in the institutional and wholesale business segments, the Chairman explained.

Reviewing the firm’s financial position for 2021, the Managing Director/ Chief Executive Officer, Mobolaji Adewumi, said the company’s total Assets grew by 86.1% to close at N34.5 billion from N18.5billion In 2020.

He said the company also recorded significant growth in Customer Deposits With 45.4% growth from 14.6 billion in 2020 to N21.2 billion in the review year, adding that Placements also grew by 177.2% from N8.7 billion in 2020 to N24.7 billion in 2021, and Shareholders’ Funds up by 107% from N3.3 billion in 2020 to N6.9 billion in 2021.

The major factors that contributed to the company’s performance, according Mr Adewumi, include recovery of Legacy Loans, increased interest income from growing Loans and Advances, Fees and Commissions, as well as other incomes and write back on credit facilities.

On the company’s Strategic Activities, the MD/CEO said, “Due to our absolute resolve to our vision and transformation agenda, we recorded significant mileage in delivery on our strategic objectives for the year by consolidating our previous performance,”

The achievements include transformation agenda, investment in human capital, capital raise, improve earnings capabilities, alternate channels development and establishment of contact centre.

Looking ahead, Mr Adewumi said “This is another year for us to show our direction to performance and value creation, validate our strategic direction, and consolidate on existing performance by implementing more strategic measures that will deliver the results we desire and build a reference brand for the industry.”

He said the strategic focus for 2022 include conversation to a Regional Bank, optimization of earnings capability, continued investment in human capital, and optimization of digital channels.

The company is one of the largest and most profitable Primary Mortgage Bank in Nigeria and it is focused on providing well-structured mortgage options as well as other financial and advisory services.

The company’s housing and mortgage products are available to all spectrum of the population in the country.

Its full suite of banking products and services is geared towards retail banking, wholesale banking, mortgage banking, and electronic banking.

Understanding the reality of the challenges many Nigerians face in their journeys to home ownership, our founder, Rose Ada Okwechime, in 1991, set out on a mission to bridge the gap between well-meaning ‘hopeful home owners’ and the affordable housing solutions they so desired. This goal informed the bank’s maiden vision – ‘making homes happen’, which defined the business we have built today.

Today, Abbey is one of the only seven national Primary Mortgage Banks (PMB) licensed by the Central Bank of Nigeria and the Federal Mortgage Bank of Nigeria (FMBN). In the recent recapitalization exercise that led to the down size of mortgage banks from 105 to only 34 mortgage banks, Abbey did not only emerge successfully capitalized but rose as one of the few that met the National obligation, whilst being a public liability company.

Abbey continues to lead the industry as an innovator in the Nigerian mortgage sector, not just offering mortgage services but also retail & investment banking solutions, positioning itself as a one-stop-shop for all domestic banking needs.

From our initial authorized share capital of N5million, we have grown to over N2.1billion in share capital and increased our equity to more than N6 billion through capital injection, bonus issue, and profitable trading. At present, we are one of the most capitalized mortgage banks in Nigeria employing over 200 staff with ten (10) branches covering three regions nationwide.

Our leadership & innovation in the industry has led to significant wins for us including our recognition as the “Best Mortgage Bank in Nigeria”, whilst being the first mortgage bank in Nigeria to have foreign equity investment through Africinvest Capital Partners; being rated by an independent Rating Agency in Nigeria; and, being IFRS compliant.

After three decades of excellence in simplifying mortgage, housing, finance & investments to Nigerians, Abbey Mortgage Bank is now re-imagined and repositioned for improved business growth and productivity in a new world.

Positioned for the age of digitization, the new Abbey is equipped with the technology of the new generation whilst still embracing its old ambition of “making homes happen” for all. This new vision welcomed a strategic partnership with VFD Group, a formidable team of innovators and energetic trailblazers who share our belief for leading-edge technology to provide bespoke banking products and services to suit the most discerning of customers.

Over the next decade and beyond, Abbey will continue with a new modern & technologically efficient vision and outlook, continually adopting the best standards, processes and practices to deliver truly innovative products, services and solutions that simplify mortgage, housing & finance, making it truly accessible for all.