By Dipo Olowookere
One of the leading players in the mortgage industry in Nigeria, Abbey Mortgage Bank Plc, has demonstrated that it has all it takes to find its way out of any situation.
In the 2020 fiscal year, the company reported a loss of N4.3 billion influenced by the shutting down of the nation’s economy to contain the dreadful COVID-19 virus. This wrecked activities in the construction industry, where it plays a leading role.
But like a true champion, the lending firm dusted itself off to restrategize and in the end, this paid off as it posted a post-tax profit of N622.2 million. This was after it improved its pre-tax profit to N661.1 million from the loss before tax of N4.3 billion a year earlier.
In the 2021 financial year, according to the results analysed by Business Post, the bank improved its interest income by 137 per cent to N3.3 billion from the N1.4 billion recorded in 2020. This was largely driven by mortgages, construction finance, and treasury investments.
It was observed that a significant contributor to this triple-digit growth in interest income was cash and short-term funds, which recorded N2.4 billion compared with the N616.4 million a year ago.
But as expected, the interest expenses jumped during the period under review by 212 per cent to N1.7 billion from N539.4 million in 2020, leaving the net interest income at N1.6 billion in contrast to the previous year’s N860.1 million.
In the year, Abbey Mortgage Bank reported a decline in fees and commission income to N135.3 million from N601.2 million as a result of lower mortgage fees from services provided over time.
However, the firm made up for this slip in other operating income, which grew to N239.2 million from N120.3 million due to more earnings from other income amid a decline in rental income and loss on financial investments at fair value through profit or loss (FVTPL).
Despite the double-digit inflation in Nigeria, the company was able to boost its total operating income to N2.0 billion from N980.1 million on the back of the gradual improvement in construction activities and government spending on infrastructure to stimulate the economy after the 2020 lockdown.
Consequently, the net operating income closed the year at N2.2 billion compared with the negative of N2.9 billion recorded in the COVID-ravaged year.
Last year, the bank’s expenses increased marginally to N1.5 billion from N1.3 billion a year before due to increased personnel and other operating expenses.
In the year, the lender improved its total assets by 86 per cent to N34 billion from N18.5 billion and on the stock exchange, its market capitalisation closed on Tuesday, May 31, 2022, at N18.3 billion, with a share price of N1.80 per unit.
Recall that last month, Abbey Mortgage Bank announced Mobolaji Adewumi as its acting Managing Director/CEO, following the appointment of its former MD/CEO, Mr Madu Hamman by President Mohammad Buhari as the new MD of the Federal Mortgage Bank of Nigeria.
Adedapo Adesanya 
Aduragbemi Omiyale