Abbey Mortgage Bank is raising ₦100 billion to change to commercial banking

Abbey Mortgage Bank is planning to raise up to ₦100 billion to support its move from being a mortgage-only bank to a full regional commercial bank.

Unlike mortgage banks that mainly offer home loans, commercial banks provide a wider range of services like savings, current accounts, business loans, and more.

The decision was approved by the bank’s board after its recent annual general meeting. The money will be raised through a mix of options, including selling new shares to the public (IPO) and taking loans through bonds and other financial tools. These funds may be raised in stages, depending on market conditions and regulatory approval.

The move is part of Abbey’s efforts to meet new rules from the Central Bank of Nigeria, which now requires regional banks to have at least $31.4 million (around ₦50 billion) in capital.

Abbey has already received shareholder approval to begin the transition and is taking steps to expand the types of banking services it offers. The goal is to go beyond mortgages and offer more financial services, especially in areas that don’t have enough banking access.

Great performance

The bank has been performing well in recent years. Its stock price rose by 20% in early 2025 and by 35% in 2024. Over the last five years, Abbey’s share price has jumped 291%, thanks to smart investments and strong earnings growth.

Abbey has also been shifting its focus from only giving out mortgages to earning more from low-risk investments, which has helped grow its income.

Abbey made more money in 2024, earning ₦12.4 billion — up 58% from the year before. Most of this came from smart investments and short-term funds, not from giving out mortgages. In fact, the bank gave out fewer mortgage loans, cutting back by 15% as it prepared to become a commercial bank. Still, profits before tax grew by nearly 35%, reaching ₦1.28 billion.

Abbey is one of several banks raising money to meet new capital requirements set by the Central Bank. So far, Nigerian banks have raised about $1 billion, about a third of the total needed, within the first eight months of the 24-month window, according to the Securities and Exchange Commission.