Abbey Mortgage Bank Retains BBB- Rating

Abbey Mortgage Bank has retained its BBB- rating, solidifying its position for enhanced business prospects and profitability.

In the assessment conducted by the esteemed credit rating agency, Augusto & Co., the bank’s rating is attributed to its commendable capitalization, a satisfactory liquidity profile, an experienced management team, and prudent leverage management. Nevertheless, within the context of a challenging business environment marked by weakened purchasing power, soaring inflation, and their adverse consequences on households and businesses, the bank’s high non-performing loan (NPL) ratio, which affects asset quality and exposure to unrated counterparties, hindered the attainment of a higher rating.

Mobolaji Adewumi, the Managing Director of the bank, expressed his sentiments regarding the rating, stating, “This rating serves as a testament to the unwavering dedication and hard work of our entire team. It mirrors our steadfast commitment to sound financial practices, effective risk management, and strategic decision-making.” Adewumi continued, “We owe these accomplishments to the trust and support of our valued customers and shareholders, and we deeply value their confidence in us. As we progress, I am confident that we will persist in upholding the highest standards of ethics and regulatory compliance while delivering outstanding services and innovative banking solutions to our customers.”

In the face of economic adversities, Abbey Mortgage Bank has maintained its impressive trajectory of profitability, recording a historic revenue high in the third quarter of the current year, along with a pre-tax profit of N776 million. This demonstrates a notable increase from the N771 million position in 2022.

Equipped with this reaffirmed rating, amplified profitability, improved share pricing, and a reduction in its share premium, Abbey is primed to conclude the year on a positive note.

The bank remains committed to leading industry trends, adapting to evolving customer requirements, and embracing digital advancements to enhance operational efficiency and customer experiences.