Abbey Mortgage Bank Surpasses Q3 Profit Forecast

Abbey Mortgage Bank Plc has reported a pre-tax profit of N670 million for the third quarter (Q3) ended September 30, 2025 — a 63.24% year-on-year (YoY) growth that exceeded its quarterly forecast by over 58%.

The performance pushed the bank’s nine-month pre-tax profit to N1.52 billion, up 57% YoY, surpassing its full-year 2024 profit by more than 18%.

Post-tax profit also rose 63% YoY to N642 million, compared to N393 million in the same period last year.

Gross earnings for the quarter increased 65% to N5.59 billion, bringing total gross earnings for the first nine months of 2025 to N13.69 billion, a 62% YoY growth.

Operational Highlights (Q3 2025 vs Q3 2024)

• Interest Income: N5.28bn (+61.62%)
• Interest Expense: N4.13bn (+74.72%)
• Net Interest Income: N1.16bn (+27.55%)
• Fee and Commission Income: N233m (+187.51%)
• Total Operating Income: N1.47bn (+43.21%)
• Operating Expenses: N797m (+29.83%)
• Earnings per Share: N0.25 (+63.16%)
• Total Assets: N111.35bn (+32.16%)
• Customer Deposits: N79.77bn (+47.99%)

Sustained Growth and Diversified Earnings

Abbey Mortgage Bank’s sustained growth in Q3 was fueled by robust interest and fee-based income.

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Interest income surged by 61.62% to N5.28 billion, contributing over 74% to gross earnings.
This was driven by a sharp increase in income from cash and short-term funds, which grew 96% to N4.19 billion, accounting for 79% of total interest income.

However, the bank’s interest expenses rose 74.72% to N4.13 billion, reflecting higher funding costs as customer deposits expanded nearly 48% in six months.
Despite this, net interest income rose 27.55%, while fee and commission income jumped 187.5%, underscoring diversification beyond core lending operations.

Solid Balance Sheet and Investor Confidence

Abbey Mortgage Bank’s total assets grew 32.16% to N111.35 billion, buoyed by increased customer deposits, which climbed 47.99% to N79.77 billion.
This growth reflects continued investor and depositor confidence in the bank’s resilience and earnings potential.

The bank’s strong performance has also been mirrored in the market, with its year-to-date share price up by 127%, signaling robust investor sentiment.

Outlook

Abbey Mortgage Bank’s ability to outperform its Q3 profit forecast, coupled with expanding balance sheet strength and rising investor confidence, positions it for a strong year-end performance.
However, the sharp rise in funding costs underscores the need for tighter deposit cost management to sustain margins amid Nigeria’s competitive interest rate environment.