Banking
Abbey Mortgage Bank Bounces Back to Profitability With N622n PAT
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.
By Aduragbemi Omiyale
In recognition of its unwavering commitment to fostering access to financing for Nigerian micro, small and medium enterprises (MSMEs), Development Bank of Nigeria Plc has been rewarded with the Financial Inclusion Leadership Award at the Champions of Inclusion Nigeria Financial Inclusion Awards.
This was at the 2024 International Financial Inclusion Conference (IFIC) organised by the Central Bank of Nigeria (CBN) in collaboration with the World Bank and other stakeholders.
The chief executive of the lender, Mr Tony Okpanachi, said the recognition affirms the company’s efforts in expanding access to financial services for MSMEs in Nigeria.
“We are honoured to receive the Financial Inclusion Leadership Award, which is a testament to our bank’s commitment to expanding access to financial services for all Nigerians. This award recognises our efforts to bridge the financial inclusion gap, particularly for a priority sector like the MSMEs.
“Additionally, this award is a validation of our strategic focus on driving financial inclusion for small businesses, and we are proud to be at the forefront of this initiative that drives that. We will continue to innovate and expand our financial inclusion programmes, ensuring that more Nigerian small and startup businesses have access to services,” he stated.
On his part, the Chief Operating Officer of DBN, Mr Bonaventure Okhaimo, said the accolade demonstrates the firm’s dedication to driving financial inclusion and economic growth in Nigeria.
“This award acknowledges our Bank’s innovative approach to widening opportunities for MSMEs in Nigeria to grow and scale their businesses,” he said.
“This award will motivate us to continue pushing the boundaries of financial inclusion, exploring more innovative solutions and partnerships to expand our reach and impact.
“We are committed to ensuring that more small businesses and startup enterprises in Nigeria have access to financial services, this award will further inspire us to accelerate our efforts in this regard,” he stated.
By Modupe Gbadeyanka
The Banker Magazine of the Financial Times Group in the United Kingdom has announced Zenith Bank Plc as Bank of the Year, Nigeria.
At the Banker’s Bank of the Year Awards 2024 held on in London on Wednesday, December 4, 2024, it was stated that Nigerian lender clinched the award for its strong management, sound business model and strategy, and approach to sustainability and ESG banking practices.
The chief executive of Zenith Bank, Ms Adaora Umeoji, described the recognition as a “testament to the unwavering trust and loyalty of our esteemed customers, the unparalleled leadership and guidance of the board and management as well as the hard work and dedication of our staff.”
She said, “It also reflects our bank’s steadfast commitment to delivering excellent services to our customers and contributing to the growth and development of the Nigerian economy.”
“We will continue to invest in innovative technologies, expand our range of products and services, and maintain our commitment to exceptional customer service in order to sustain our position as Nigeria’s Number One Bank,” Ms Umeoji assured.
The Banker’s Bank of the Year accolade is among the most coveted and widely regarded award in the banking industry.
Often contested by the world’s leading financial institutions, the winners span across Africa, Asia-Pacific, Central & Eastern Europe, Latin America, the Middle East, North America and Western Europe.
Recall that last month, Zenith Bank commissioned its branch in Paris, France following the granting of the final approval by the country’s banking regulator, the Autorité de ContrôlePrudentiel et de Résolution (ACPR).
This is part of the bank’s global expansion strategy, and its commitment to serving clients wherever their businesses are around the world.
Zenith Bank has continued to earn numerous awards, with this latest accolade coming on the heels of several recognitions, including being the Number One Bank in Nigeria by Tier-1 Capital for the 15th consecutive year in the 2024 Top 1000 World Banks Ranking, published by The Banker Magazine.
By Modupe Gbadeyanka
The Central Bank of Nigeria (CBN) has published some phone numbers citizens can call to report any bank that fails to give them cash over-the-counter or at Automated Teller Machines (ATMs).
In a circular, the banking sector regulator said cash has been made available to lenders to disburse to their customers, saying they have no reason to do so.
DMBs are directed to ensure efficient cash disbursement to customers OTC and through ATMs as the CBN will intensify its oversight roles to enforce this directive and ensure compliance,” a part of a circular signed by acting Director of Currency Operations, Solaja Mohammed Olayemi; and the acting Director for Branch Operations, Isa-Olatinwo Aisha, stated.
It encouraged members of the public who are unable to obtain cash at their banks to “report these instances using the designated reporting channels and format provided,” saying it will “assist the CBN in addressing issues hindering the availability of cash and further improve currency circulation.”
They are to reach the central bank through designated phone numbers of the CBN branch in the state where the incident occurred or via email.
According to the circular, the complaints should be sent with “the relevant details which shall include account name/name of the DMB/amount/time and date of incidents, amongst others.”
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