Abbey Mortgage Bank Retains BBB- Rating on Satisfactory Liquidity Profile

By Aduragbemi Omiyale

The BBB- rating assigned to Abbey Mortgage Bank Plc by a Nigerian credit rating agency, Agusto & Co, has been retained due to its satisfactory liquidity profile, good capitalisation, low leverage and experienced management team.

Despite economic challenges, Abbey Mortgage Bank has continued its impressive profitable trajectory, generating record revenue in the third quarter of this year, with a pre-tax profit of N776 million, an increase from its 2022 position of N771 million.

Considering the challenging business environment characterized by weak purchasing power, high inflation, and its adverse impact on households and businesses, a higher rating was impeded by the bank’s high non-performing loan (NPL) ratio which impairs asset quality and exposures to unrated counterparties.

Reacting to the latest development, the Managing Director of Abbey Mortgage Bank, Mr Mobolaji Adewunmi, said, “This rating is a testament to the hard work and dedication of our entire team and a reflection of our commitment to sound financial practices, effective risk management, and strategic decision-making.”

“We owe these achievements to the trust and support of our valued customers and shareholders and deeply appreciate their confidence in us,” he added.

“As we move forward, I am optimistic that we will continue to uphold the highest standards of ethics and regulatory compliance, whilst providing exceptional services and innovative banking solutions to our customers,” Mr Adewunmi assured.

With this new rating, increased profitability and share pricing, as well as the reduction of its share premium, Abbey is poised to end the year on a positive note.

The bank said it remains dedicated to being at the forefront of industry trends, adapting to evolving customer needs, and embracing digital advancements to improve its operational efficiency and customer experiences.