Abbey Mortgage Bank Plc has reported a remarkable 58.24% year-on-year (YoY) increase in revenue, reaching ₦12.37 billion for the full year 2024. The strong financial results were also marked by a 40.17% growth in Earnings Per Share (EPS) to 12.03 kobo, reflecting higher interest income, disciplined cost management, and improved operational efficiency.
The bank’s unaudited financial statements for the year ended December 31, 2024, highlight its resilience amid macroeconomic headwinds, driven by robust customer deposit growth, strategic lending adjustments, and digital banking expansion.
Key Financial Highlights (2024 vs. 2023)
- Gross Earnings: ₦12.37 billion (2023: ₦7.81 billion) ↑58.24%
- Net Operating Income: ₦3.81 billion (2023: ₦3.29 billion) ↑15.64%
- Profit Before Tax (PBT): ₦1.28 billion (2023: ₦951.34 million) ↑34.88%
- Profit After Tax (PAT): ₦1.22 billion (2023: ₦871.28 million) ↑40.17%
- Basic Earnings Per Share (EPS): 12.03 kobo (2023: 8.58 kobo) ↑40.17%
Abbey Mortgage Bank’s record-breaking revenue growth and EPS expansion underscore its strategic positioning in Nigeria’s mortgage banking sector, with a strong emphasis on profitability, deposit growth, and controlled lending.
Revenue Growth: Key Drivers
Abbey Mortgage Bank’s gross earnings surged 58.24% YoY to ₦12.37 billion, its highest revenue ever recorded. This outstanding performance was driven by:
1. Increase in Interest Income (+65.42%)
- Interest income rose to ₦11.91 billion (2023: ₦7.20 billion), benefiting from higher loan yields and improved asset pricing strategies.
- Strong deposit inflows provided a stable funding base for income-generating assets.
2. Higher Fee-Based & Non-Interest Income
- The bank capitalized on mortgage advisory services, real estate financing solutions, and digital transaction fees.
- Non-interest income supported revenue diversification, reducing reliance on traditional lending.
3. Growth in Customer Deposits (+31.96%)
- Deposits from customers jumped to ₦52.85 billion (2023: ₦40.05 billion), reflecting stronger customer confidence and brand trust.
- The bank’s digital banking expansion attracted new retail and corporate customers, boosting deposit growth.
Earnings Per Share (EPS) Growth: Key Factors
Abbey Mortgage Bank’s basic Earnings Per Share (EPS) increased by 40.17%, reaching 12.03 kobo, its highest in five years.
The strong EPS growth was fueled by:
- Higher Net Profit (+40.17%)
- Net profit surged to ₦1.22 billion due to higher revenue and lower impairment losses.
- The bank effectively controlled cost escalation, ensuring a higher profit conversion rate.
- Improved Cost Management
- Operating expenses grew moderately by 7.6% to ₦2.52 billion, well below the 58.24% revenue growth rate.
- Credit loss expenses were completely eliminated, compared to ₦108.48 million in 2023, supporting strong bottom-line expansion.
- Capital Efficiency & Asset Allocation
- The bank optimized its asset structure, reducing risk exposure while maintaining high-yield mortgage portfolios.
- A cautious lending approach resulted in a 14.80% drop in loans and advances, but this was offset by higher deposit-driven earnings.
Operational Highlights & Cost Management
Abbey Mortgage Bank maintained strong cost discipline, ensuring that profitability kept pace with revenue growth:
- Interest Expense: ₦8.55 billion (2023: ₦4.63 billion) ↑84.67%
- Net Interest Income: ₦3.35 billion (2023: ₦2.57 billion) ↑30.3%
- Operating Expenses: ₦2.52 billion (2023: ₦2.34 billion) ↑7.6%
- No recorded credit losses, reflecting better asset quality and risk management.
While interest expenses increased sharply due to higher deposit mobilization costs, the bank’s strategic investment in high-yield assets helped offset rising funding expenses.
Balance Sheet Expansion & Capital Strength
Abbey Mortgage Bank’s balance sheet remains robust, positioning it for sustained growth:
- Total Assets: ₦83.25 billion (2023: ₦57.54 billion) ↑44.68%
- Total Equity: ₦9.38 billion (2023: ₦8.57 billion) ↑9.51%
- Loans & Advances: ₦12.04 billion (2023: ₦14.14 billion) ↓14.80%
- Customer Deposits: ₦52.85 billion (2023: ₦40.05 billion) ↑31.96%
The decline in loans and advances (-14.80%) suggests a more risk-conscious lending strategy, while strong deposit growth (+31.96%) provided ample liquidity for future investments.
Dividend & Shareholder Returns
Abbey Mortgage Bank maintained its commitment to rewarding shareholders, with a total dividend payout of ₦406.15 million.
- Dividend per share (DPS): ₦0.04
- Dividend payout ratio: 33%
The bank’s increasing EPS and dividend payouts reinforce its shareholder-friendly capital allocation strategy.
Macroeconomic & Industry Outlook
1. Nigeria’s Inflation & Interest Rate Trends
- Nigeria’s inflation rate stood at 34.8% in December 2024, affecting overall economic conditions.
- The CBN’s Monetary Policy Rate (MPR) at 27.5% led to higher borrowing costs, yet Abbey’s strong deposit base reduced funding constraints.
2. Exchange Rate Volatility
- The naira depreciated to ₦1,533 per USD in January 2025, increasing import costs for real estate and financial services.
3. Mortgage Banking Growth
- Rising home financing demand and government-backed housing initiatives created new opportunities for Abbey Mortgage Bank.
Strategic Priorities for 2025
Abbey Mortgage Bank aims to sustain growth and improve profitability through:
1. Expanding Mortgage Lending
- Increasing access to affordable housing loans.
- Enhancing partnerships with real estate developers.
2. Strengthening Digital Banking
- Leveraging fintech collaborations for seamless loan disbursements.
- Expanding mobile banking and online mortgage applications.
3. Loan Portfolio Restructuring
- Optimizing risk-adjusted loan pricing.
- Reducing exposure to high-risk mortgage segments.
Conclusion
Abbey Mortgage Bank’s exceptional financial performance in 2024 underscores its ability to drive revenue and earnings growth amid a challenging economic environment.
- Gross earnings surged 58.24% to ₦12.37 billion, reflecting strong mortgage banking expansion.
- EPS increased 40.17% to 12.03 kobo, demonstrating profitability resilience.
- Deposits grew 31.96%, enhancing liquidity and funding capacity.
- Dividend payout of ₦406.15 million, rewarding shareholders.
With strong fundamentals, digital banking expansion, and a growing mortgage market, Abbey Mortgage Bank is well-positioned for sustained growth in 2025 and beyond.