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Abbey Mortgage Bank Bounces Back to Profitability With N622n PAT



Abbey Mortgage Bank

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.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via


Polaris Bank in Safe Hands, No Need to Panic—Management



Polaris Bank Rewards Customers

By Aduragbemi Omiyale

The management of Polaris Bank Limited has urged its customers and members of the public not to panic over reports that the financial institution has been sold to a new investor, Mr Auwal Gombe, in the sum of N40 billion.

It was recently reported that efforts are being made to hand over the lender to the businessman, who is said to be an ally of former military president, Mr Ibrahim Babangida, after the Central Bank of Nigeria (CBN) nationalised the defunct Skye Bank Plc into Polaris Bank in 2018.

In a statement issued on Friday in Lagos, the bank described the report of the purported sale as not only “speculative” but done to deliberately “create panic” among its customers and the banking community.

The company said the CBN established it and injected funds for its operations, it has bounced back to profitability, with a solid balance sheet, saying there is no cause for alarm as the bank was in safe hands.

“Stakeholders may recall the regulatory intervention in the erstwhile Skye Bank by the CBN and the subsequent injection of capital via the Asset Management Corporation of Nigeria (AMCON) through a bridge bank process, which birthed Polaris Bank in 2018.

“The bank has since stabilised its operations following the intervention; improving its balance sheet, customer base and profitability,” a part of the notice today said.

Continuing, Polaris Bank noted that, “Whilst the intention has always been to return the bank to private ownership, such a sale would occur following regulatory approvals with formal notification to all relevant stakeholders,” expressing its commitment to “ensuring timely communication to the public in such an event.”

 “The board and management hereby reassure its customers, staff and the general public that Polaris Bank remains a stable, strong and credible financial institution, positioned to deliver sustainable value to all its stakeholders,” the statement concluded.

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Wema Bank Refutes Dud Cheque, Forgery Allegations




By Aduragbemi Omiyale

The management of Wema Bank Plc has rubbished an allegation that it issued a dud cheque in connection with a garnishee proceeding for the payment of a judgement debt on behalf of the Bayelsa State Government.

A legal practitioner, Mr George Haliday, had accused the financial institution of issuing dud cheques but in a statement issued on Wednesday, the lender explained that the cheques have only not been cleared for payment because of the subsisting appeal at the Court of Appeal sitting in Abuja on the garnishee proceeding which has now been decided in its favour.

According to the statement, the lawyer only ran to the Magistrate Court in Abuja to lodge a complaint about the issuance of dud cheques after he lost his case at the appellate court.

“It is very worthy of note that the judgement debt against Bayelsa State Government, which Barrister George Haliday attempted to enforce by a garnishee proceeding, thereby leading to the issuance of the cheques in question had been settled by Bayelsa State Government via a Terms of Settlement between Barrister George Haliday and the Bayelsa State Government at the Supreme Court,” a part of the statement.

Recently, there were reports that the Managing Director/CEO of Wema Bank, Mr Ademola Adebise, was issued an arrest warrant, but the bank dismissed this, saying its leader was not given a fair hearing in the matter.

“Wema Bank wishes to state that the warrant for the arrest of Mr Ademola Adebise is in violation of his fundamental rights to fair hearing as he was never personally served with any process to appear before the magistrate court nor was he represented in court.

“We are a law-abiding corporate citizen; if there was any court summons properly served on the Managing Director for his appearance in court, he would have done so without fail.

“But in this case, there was no such service extended to him or any court processes personally served on him to appear in court until a warrant of arrest was issued in absentia. We view the arrest warrant as being an infringement on his fundamental rights,” the statement said.

Concluding, the lender emphatically refuted and dismissed “in their entirety, the allegations of dud cheque and forgery levelled against our bank and the Managing Director. We also dismiss the inappropriate issuance of a bench warrant on our Managing Director.

“We are already engaging in legitimate actions to seek redress and bring all the perpetrators of these unprofessional conducts and heinous criminal acts against our Managing Director and the bank to book.”

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Advans Nigeria Becomes Most Innovative Microfinance Bank



Advans MFB

By Aduragbemi Omiyale

More big feathers have been added to the colourful cap of Advans La Fayette Microfinance Bank, cementing its leadership position in the small lending business in Nigeria.

Recently, in recognition of its customer-centric credentials and innovation in product development, service delivery and brand management, the financial institution was named the Best Microfinance Bank in Nigeria at the Financial Derivatives Awards 2022.

Also, the company emerged as the Most Innovative Microfinance Bank in Nigeria in the Global Brands Magazine and World Economic Magazine Awards 2022.

The Managing Director/CEO of Advans La Fayette Microfinance Bank, Mr Gaetan Debuchy, while reacting to the accolades bestowed on the firm, dedicated the awards to the working management and staff of the bank, promising that the bank would continue to break boundaries.

“We are excited to win these awards. It further validates our innovative approach to providing customer-centric, affordable and transparent financial services,” Mr Debuchy said.

Also, the Head of Marketing and Communication at Advans La Fayette Microfinance Bank, Mr Kayode Abraham, stated that, “Over the years, we have centred our business on customer needs and feedback, which has helped us develop financial solutions from scratch to completion. We are pleased to be recognised as the most innovative and best microfinance bank in Nigeria.”

Earlier in the year, Advans Nigeria upgraded its mobile banking app ‘Adspire’ to include users’ ability to request bank statements and control their daily transaction limit. Through the app, clients can receive notifications and share by referring their friends and loved ones.

The bank recently introduced a micro-health insurance product and an education loan to facilitate financial inclusion.

The health insurance product was designed to ensure existing and prospective clients have access to high-quality and affordable health care services, while the education loan was designed to provide working and investment capital for school owners and to assist parents in paying their children’s school fees with ease.

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