Dipo Olowookere
By Dipo Olowookere
The management of Abbey Mortgage Bank has promised to put up strategies to increase the earnings of the company as it repositions for growth.
The organisation operates in the mortgage sector in Nigeria, which is still not fully explored because of several factors frustrating the growth of the industry, including government policies on land acquisition, the low purchasing power of Nigerians, double-digit high-interest rate, amongst others.
However, in the midst of these headwinds, Abbey Mortgage Bank believes it has the capacity to deliver and ensure that citizens get the financial support to own a house of their own.
In order to have the financial muscle to weather the storm, the company recently raised fresh capital from its shareholders through a rights issue and it was successful.
The extra funding helped to increase the capital of the bank by about N3 billion and according to a statement from the lender, the success of the exercise “is an indication of the confidence that the shareholders have in the management and the strategic intention of the bank.”
But in order to attain the next phase of growth, the management has identified key areas to drive revenue which includes mortgage/construction finance, treasury related activities and aggressive customer acquisition through the launch of its digital channels.
Business Post gathered that in the last few months, the bank grew its deposit liability to N14 billion from N6 billion in 2020 through aggressive sales drive and increased brand visibility.
Abbey Mortgage Bank Plc a public limited liability bank incorporated and registered in Nigeria on 26 August 1991.
The financial institution obtained its license to operate as a mortgage bank on January 20, 1992, and commenced business on March 11, 1992.
It was later converted to a public limited liability company in September 2007 and on October 21, 2008, it became officially listed on the Nigerian Stock Exchange (NSE).
The principal activities of the Bank are the provision of mortgage services, financial advisory, and real estate construction finance.
Some months ago, Abbey Mortgage Bank sold 2,261,538,462 ordinary shares to VFD Group, which acquired a key stake in the organisation in a deal worth about N2.4 billion (precisely about N2.375 billion). The shares were sold to VFD Group by way of a placement at N1.05 each.
