Abbey Mortgage shareholders approve N164.5 billion raise amid regional bank transition

Shareholders of Abbey Mortgage Bank Plc have approved plans to raise up to N164.5 billion in fresh capital as the lender accelerates efforts to transform into a regional commercial bank.

The approvals were granted at the bank’s Annual General Meeting (AGM) held on Monday, May 25, 2026, where shareholders overwhelmingly backed a N64.5 billion private placement and authorised the board to raise an additional N100 billion through various equity and debt instruments, subject to regulatory approvals.

Speaking at the meeting, the Chairman of the Board, Mr. Samuel Oni, said the capital raise is a critical component of the bank’s strategy to secure a regional commercial banking licence and position the institution for its next phase of growth.

According to him, the board and management are aggressively working towards securing the approvals required for its conversion from a mortgage bank to a regional commercial bank, a move he described as a key strategic priority.

The chairman said they expect significant progress before the next annual general meeting, expressing confidence that Abbey would be operating as a regional commercial bank by then.

What the chairman is saying: 

Responding to shareholder questions, Oni said the bank is accelerating efforts to complete its ongoing capital raise and regulatory processes needed for the conversion.

• “We are pursuing very aggressively our conversion. And I want to believe, by the grace of God, and with the support of the shareholders, that we will anchor that project very, very soon,” he said.
• “By the time we are meeting next year, by the grace of God, we will be talking about Abbey Plc as a commercial bank with regional authorisation.” 

On the planned capital raise, the chairman noted that documentation for the proposed private placement is nearing completion and only awaits final regulatory approvals.

• “The documentation for the rights issue is almost ready. It’s just for us to get the nod of regulators, and then we put that in motion,” he said.

The chairman also defended the bank’s dividend policy, explaining that management is balancing shareholder rewards with the need to preserve capital ahead of the bank’s transition into commercial banking.

• “We want to save money for the future of the bank. We believe in rewarding the shareholders appropriately… however, we need to balance that with our capital buffers.” 

The comments suggest the bank is prioritising capital retention and balance-sheet strengthening as it prepares for a more capital-intensive commercial banking model.

MD/CEO speaks on capital, dividends and workforce strategy: 

Also speaking at the AGM, the Managing Director/Chief Executive Officer, Mr. Mobolaji Adewumi, thanked shareholders for their continued support and reiterated management’s commitment to accelerating the bank’s transformation programme.

According to him, the proposed capital raise will help strengthen working capital, support regulatory requirements, and provide the resources needed to complete the bank’s conversion plans.

• “Immediately after this AGM and on receiving all the regulatory nod that is required, we would expedite to close that,” he said.

On dividends, Adewumi said the board remains committed to rewarding shareholders while simultaneously building sufficient buffers to absorb future risks.

• “One of the focal points of the current board is to ensure that at every point in time, shareholders are well compensated. But we also bear in mind the need to ensure that as you are compensating shareholders, you are providing enough buffer to absorb any exposure.” 

The MD noted that the bank doubled its dividend payout this year because of improved financial performance but stressed that future growth opportunities require disciplined capital management.

He also explained that recent increases in staff numbers were driven by strategic recruitment ahead of the planned conversion to commercial banking, adding that management has maintained cost discipline despite hiring specialised talent.

More insights: 

Shareholders overwhelmingly approved all resolutions presented at the AGM, including measures designed to strengthen the bank’s capital base.

Key resolutions approved include:

• Payment of a dividend of 12 kobo per share for the 2025 financial year.
• Re-election of Ms. Chika Ochornogo and Ms. Joel Okwechime as non-executive directors.
• Election of Mr. John Okonkwo as Executive Director and non-executive director.
• Approval of directors’ remuneration for the 2026 financial year.
• Establishment of a debt issuance programme of up to N100 billion.
• Approval to raise up to N64.55 billion through a private placement of 26.56 billion ordinary shares at N2.43 per share, subject to regulatory approvals.
• Authorisation for the board to raise additional capital of up to N100 billion through a combination of equity and debt instruments, including rights issues, public offers, bonds, commercial papers and other funding structures.

The resolutions received near-unanimous support from shareholders representing more than 81% of the bank’s issued share capital.

Get up to speed:

Abbey Mortgage Bank delivered one of its strongest financial performances in recent years in 2025, providing a solid backdrop for its commercial banking ambitions.

• According to its audited 2025 financial statements, the bank reported a pre-tax profit of N3.12 billion, representing a 154.3% increase from N1.22 billion recorded in 2024.
• Profit after tax rose to N2.16 billion, while earnings per share increased to 21 kobo from 11 kobo a year earlier. Interest income climbed to N18.97 billion, driven largely by earnings from cash and short-term funds, investment securities, and loans.
• Total assets nearly doubled to N165.8 billion from N84.2 billion in the previous year.

The growth momentum has continued into 2026. In its first-quarter (Q1,2026) results, Abbey Mortgage Bank reported a pre-tax profit of N750.3 million, up 108.8% year-on-year, while profit after tax rose 110% to N715 million. Earnings per share increased to 28.18 kobo, reflecting continued improvement in profitability.

What you should know: 

Abbey Mortgage Bank’s planned transition to a regional commercial bank comes amid the just-concluded recapitalisation exercise across Nigeria’s banking industry.

• The approvals secured at the AGM provide management with significant flexibility to raise both equity and debt capital, potentially creating a funding war chest of more than N164.55 billion over time.
• If successfully executed, the capital programme could significantly strengthen the bank’s balance sheet, support loan growth, and expand its product offerings beyond mortgage banking.
• It will also position it to compete more effectively within Nigeria’s broader banking sector.

For shareholders, the key milestones to watch in the coming months will be regulatory approval for the private placement, progress on the commercial banking licence conversion and deployment of the fresh capital into growth opportunities.