Abbey Mortgage Bank Risk Management Strategies Yield Positive Results

Image

By Aduragbemi Omiyale

A notable real estate lender in Nigeria, Abbey Mortgage Bank Plc, has continued to show resilience despite the tough macroeconomic environment triggered by high energy costs and inflationary pressure.

Its financial performance revealed that in December 2023, its net profit improved by 11.79 per cent to N856.26 million from the N766.19 million achieved in December 2022.

Also, interest income surged by 49.27 per cent to N49.27 billion in the period under review from N4.83 billion in the previous year, though fees and commission income shrank by 83.15 per cent to N395.08 million.

It was observed that the bank was able to reduce costs to bolster efficiency as total operating expenses were trimmed by 1.70 per cent to N2.31 billion amid a challenging environment.

As for its Non-Performing Loans (NPLs), the risk management strategies put in place by the financial institution yielded meaningful results.

Over the past three years, Abbey Mortgage Bank has been able to reduce the NPLs, which justifies good asset quality in an industry where sector players are grappling with deteriorating asset quality.

The company has read the handwriting on the wall that the regulator will jerk up industry minimum capital requirements as it is ready for recapitalization.

“Abbey Mortgage Bank is already working towards that, to ensure that at every point in time, we are above whatever minimum capital requirement is. The last capital raise was in 2020 where we raised circa N3 billion,” the chief executive of Abbey Mortgage Bank, Mr Mobolaji Adewumi, said.

“According to the last review, we are already at eight per cent, which is far below what you will get from most mortgage banks.

“The CBN has said that the banks would have to recapitalize and we are expecting that this will not just affect the commercial banks, it will affect the microfinance banks and even the mortgage banks.

“Abbey Mortgage Bank is already working towards that, to ensure that at every point in time, we are above whatever the minimum capital requirement is. The last capital raise was in 2020 where we raised circa N3 billion,” he added.

Share
Related Stories
Image
02-February-2024

CBN Bans Banks, Fintechs From International Money Transfer Services

By Adedapo Adesanya The Central Bank of Nigeria (CBN) has banned banks and financial technology companies (fintechs) from international money transfer services. This was contained in the revised guidelines for the operations of IMTOs, which were officially released on January 31, 2024. The CBN directed that, “All banks are prohibited from operating International Money Transfer services but can act as agents. “Also, Financial Technology Companies are not allowed to obtain approval for IMTO. “The provisions of BOFIA 2020 on the prohibition of employment of certain persons in banks shall also apply to IMTOS.” By stopping banks and fintechs from international

Image
05-March-2024

Banks Involved in 70% of Economic Crimes in Nigeria—EFCC

By Aduragbemi Omiyale Nearly 70 per cent of financial crimes in Nigeria have the involvement of banks, the Economic and Financial Crimes Commission (EFCC) has claimed. “Broadly speaking, banking fraud in Nigeria is both inside and outside related. “The inside related fraud comprises outright selling of customers’ deposits, authorising loan facilities, forgery and several other kinds of unhealthy and criminal practices,” the chairman of EFCC, Mr Ola Olukoyede, said while speaking at the Annual Retreat and General Meeting of the Association of Chief Audit Executives of Banks in Nigeria held in Abuja. The EFCC boss, represented by the agency’s Director

Image
06-February-2024

Access Bank Gets $75m Japanese Loan for Climate-Sensitive Projects

By Aduragbemi Omiyale A $75 million loan to be used to finance climate-sensitive and agricultural projects has been secured by Access Bank Plc from the Japan International Cooperation Agency (JICA). The chief executive of Access Bank, Mr Roosevelt Ogbonna, at the signing of the loan agreement on Monday, disclosed that the facility underscores a commitment of Access Bank to support climate change measures in Nigeria. “At Access Bank, we recognise the urgent need for sustainable solutions to combat climate change. This landmark agreement with JICA reaffirms our commitment to leveraging financial resources for impactful initiatives that promote environmental resilience and

More Stories
Image
15-January-2021

LASUCOM Closes Hostels as Students Contract COVID-19

By Ahmed Rahma The Lagos State University College of Medicine (LASUCOM) has asked all students to self-isolate after three of them tested positive for COVID-19. In a statement issued on Thursday, the institution said the incident has forced the management to order the immediate closure of its hostel facilities for decontamination. According to the Coordinator, Centre for Information, Press and Public Relations of Lagos State University, Mr Ademola Adekoya, the roommates of the students who tested positive and their associates are being tested. Mr Adekoya also informed that the college was providing psychological support to the three students and their

Image
28-June-2018

Power Africa Unveils Gas Roadmap to 2030

By Dipo Olowookere Yesterday, at the World Gas Conference in Washington, D.C., the U.S. Agency for International Development’s Power Africa Coordinator launched the Gas Roadmap to 2030 for sub-Saharan Africa (SSA). The Roadmap outlines a plan for achieving up to 16,000 megawatts of additional gas-fired power generation in SSA by 2030. Power Africa’s Gas Roadmap estimates U.S. companies could invest in, or compete for, $175 billion worth of gas power projects in SSA, with the potential for at least $5 billion of U.S. exports of liquefied natural gas by 2030.

Image
14-September-2020

Steady CSCS Price Depreciation Weakens NASD in Week 37

By Adedapo Adesanya The steady losses recorded by the Central Securities Clearing Systems (CSCS) Plc contributed to the negative outcome of the NASD Over-the-Counter Securities Exchange in the 37th week of trading in 2020. During the week, both the NASD Unlisted Securities Index (NSI) and market capitalisation depreciated by 0.23 per cent as a result of the performance of CSCS, which is one of the market’s bellwethers. The NSI fell by 1.67 points to close the week at 712.54 points compared with the previous week’s 714.21 points. In the same vein, the market capitalisation of the NASD declined by N1.23

Image
12-December-2017

FG Releases Fresh N750b to MDAs for Capital Projects

By Modupe Gbadeyanka The sum of N750 billion will be released this week by the Federal Government to Ministries, Departments and Agencies (MDAs) of government. This amount is for the implementation of capital projects contained in the 2017 budget passed into law in May and signed in June this year. Minister of Finance, Mrs Kemi Adeosun, confirmed this released on Tuesday morning through her official Twitter account. With the N750 billion to be released this week, it would take the amount released so far in the budget, for infrastructure projects, to N1.2 trillion. “This week @FinMinNigeria will release N750 billion

Image
13-September-2023

Bears Tighten Grip on NGX as Investors Offload MTN, Nestle, Others

By Dipo Olowookere The bears consolidated their dominance on the Nigerian Exchange (NGX) Limited on Tuesday amid sustained selling pressure triggered by profit-taking in financial and consumer goods stocks. Equities like MTN Nigeria, Nestle Nigeria, Zenith Bank, GTCO, Dangote Sugar and others suffered losses during the session. The increase in the interim dividend payout by UBA and its outstanding performance in the first half of the year could not persuade traders to slow down in their profit-booking activities. At the close of transactions, the stock market further shrank by 0.80 per cent, with the banking, insurance, and consumer goods sectors

Image
04-October-2022

Verve Urges Cardholders to Partake in Ongoing Promo

By Adedapo Adesanya Verve cardholders have been advised to join the ongoing customer loyalty reward promo, which started in August 2022 and will end on October 30, 2022. The payments company introduced the campaign to reward cardholders with exciting gifts and cash prizes that will enhance customer satisfaction and loyalty. Customers can enjoy their slice of the N70 million up for grabs in the promo. The more transactions carried out with Verve cards on POS, WEB, ATMs, and Paycodes, the closer they are to being amongst the 20 customers to cruise in the millionaire club. Verve cardholders will be able

Image
27-September-2019

Cornerstone Insurance Sells Head Office Building

By Dipo Olowookere The head office building of Cornerstone Insurance Plc located on Oba Yesufu Abiodun Road, Victoria Island, Lagos, has been sold, the insurance company confirmed on Friday. A notice by the firm today said the property, held by a Special Purpose Vehicle (SPV), was sold to the new owners after receiving approval from the board of directors of the company. It was stated that the building was jointly owned in partnership with Capital Alliance Property Investment Company Limited and FIN Insurance Company Limited. “Cornerstone Insurance PLC wishes to inform its esteemed shareholders, stakeholders, the Nigerian Stock Exchange (NSE)

Image
12-December-2019

CLEEN Foundation Wins 2019 Human Rights Award

By Adedapo Adesanya The National Human Rights Commission (NHRC) has announced CLEEN Foundation as winner of the 2019 Human Rights Award for its immense contributions in strengthening law enforcement agencies for the protection of human rights in Nigeria. In an award ceremony hosted on Sunday, December 8 at Sheraton Hotel and Towers, Abuja, the Executive Director of CLEEN Foundation, Dr Benson Olugbuo, while receiving the award, dedicated it to all victims and survivors of human rights abuses in Nigeria from 1960 to 2019. CLEEN Foundation is a non-governmental organization established in January 1998 that emerged in response to military dictatorship

Ad
Ad
Recent Stories
Image
05-March-2024

Emotions Pour as Dignitaries Eulogise Late Herbert Wigwe

By Adedapo Adesanya  It was an emotional rollercoaster at the tribute event held on Monday night to celebrate the late group chief executive of Access Holdings Plc, Mr Herbert Wigwe. Dignitaries from government, corporate organisations, and royalty paid tribute to the late titan who died alongside his wife, son, and a former group chairman of the Nigerian Exchange (NGX) Group Plc, Mr Abimbola Ogunbajo, on February 9 in the United States. The event which was monitored by Business Post was divided into six segments – Young Hebert, the banker, the entrepreneur, the CEO, the builder and the ambassador. These personalities

Image
05-March-2024

Nigeria’s Economic Outlook is Challenging—IMF Declares

By Aduragbemi Omiyale The International Monetary Fund (IMF) has alerted that tough times await Nigerians, though it retained its gross domestic product (GDP) growth forecast for 2024 at 3.2 per cent. In a statement on the conclusion of the IMF Staff 2024 Article IV Mission to Nigeria, the global lender said the administration of President Bola Tinubu “inherited a difficult economic situation marked by low growth, low revenue collection, accelerating inflation, and external imbalances built up over years.” However, it praised the government’s approval of an effective and well-targeted social protection system, including the release of grains, seeds, and fertilizers,

Image
05-March-2024

Banks Involved in 70% of Economic Crimes in Nigeria—EFCC

By Aduragbemi Omiyale Nearly 70 per cent of financial crimes in Nigeria have the involvement of banks, the Economic and Financial Crimes Commission (EFCC) has claimed. “Broadly speaking, banking fraud in Nigeria is both inside and outside related. “The inside related fraud comprises outright selling of customers’ deposits, authorising loan facilities, forgery and several other kinds of unhealthy and criminal practices,” the chairman of EFCC, Mr Ola Olukoyede, said while speaking at the Annual Retreat and General Meeting of the Association of Chief Audit Executives of Banks in Nigeria held in Abuja. The EFCC boss, represented by the agency’s Director

Image
05-March-2024

Nigerian Air Force Airstrikes Hit Two Illegal Refineries in Rivers

By Adedapo Adesanya The Nigerian Air Force component of Operation Delta Safe, through airstrikes destroyed two illegal oil refining sites in Krakama and Temakiri, Degema Local Government Area of Rivers State, in continuation of efforts to stamp out the activities of crude oil thieves and oil pipeline vandals in the country. This was disclosed by the Director of Public Relations and Information, Nigerian Air Force, Mr Edward Gabkwet, an Air Vice Marshal, saying the illegal oil refining sites were observed actively operating with Cotonou boats sighted nearby with the probable intent to illegally siphon crude oil from the sites. Mr

Image
05-March-2024

NGX Remains Catalyst for Economic Growth—Chiemeka

By Aduragbemi Omiyale The acting chief executive of the Nigerian Exchange (NGX) Limited, Mr Jude Chiemeka, has described the bourse as a catalyst for economic growth and development. He said this at the listing of 7.5 billion ordinary shares of Transcorp Power Plc at N240 per unit at the exchange on Monday. The energy firm raised the market capitalisation of the trading platform by N1.8 trillion yesterday. According to him, the inclusion of Transcorp Power into the NGX, the first listing of the year, underscored the pivotal role the bourse plays in shaping Nigeria’s economic landscape. He added that NGX

Image
05-March-2024

Dangote Renames Lagos Refinery Road After Herbert Wigwe

By Modupe Gbadeyanka The road to the Dangote Refinery in the Lekki area of Lagos State has been renamed after the late group chief executive of Access Holdings Plc, Mr Herbert Wigwe. This development was announced on Monday night by the owner of the oil facility, Mr Aliko Dangote, during the Celebrating Herbert Wigwe’s Professional Legacy, who said this gesture was to immortalise his friend. The Nigerian billionaire businessman and the richest black man on earth, in an emotional tribute to the late banker, who died in a helicopter crash in the United States on February 9, 2024, along with

Image
05-March-2024

Investors of Unlisted Securities Lose N43bn

By Adedapo Adesanya It was a bad day for investors of unlisted securities in Nigeria as the NASD Over-the-Counter (OTC) Securities Exchange ended the first trading session of the week on a negative note with a 3.11 per cent loss triggered by four stocks on the platform. The culprits were UBN Property Plc, Aradel Holdings Plc, Central Securities Clearing System Plc, and Resourcery Plc. They were under selling pressure during the trading session. This resultantly trimmed N43 billion from the market capitalisation of the bourse to N1.449 trillion from N1.542 trillion, as the NASD Unlisted Security Index (NSI) dropped 35.53

Image
05-March-2024

Naira Value Improves at Official Market, Deflates at Parallel Market

By Adedapo Adesanya The Naira appreciated further against the greenback in the Nigerian Autonomous Foreign Exchange Market (NAFEM) segment of the FX market on Monday, March 5 by N14.06 or 0.9 per cent to trade at N1,534.19/$1 compared with last Friday’s value of N1,548.25/$1. The improvement in the value of the domestic currency happened as the forex market attempts to find stability after months of turbulence due to a shortfall in the supply of Dollars into the system. Yesterday, the value of forex trades depreciated by 39.7 per cent or $117.37 million to $178.63 million from the $296.00 million recorded

Image
05-March-2024

Oil Market Falls Despite OPEC+ Cut Extension

By Adedapo Adesanya  The oil market fell slightly on Monday, as demand headwinds outweighed a widely expected extension of voluntary output cuts through the middle of the year by the Organization of the Petroleum Exporting Countries and its allies (OPEC+). Brent futures dropped 81 cents to quote at $82.74 a barrel while the US West Texas Intermediate (WTI) weakened by $1.22 to trade at $78.75 a barrel. The OPEC+ producers agreed over the weekend to extend their voluntary oil output cuts of 2.2 million barrels per day into the second quarter to cushion the market amid global economic concerns and

Image
05-March-2024

Investors Mop up Nigerian Stocks on Economic Optimism

By Dipo Olowookere The Nigerian Exchange (NGX) Limited witnessed a 0.10 per cent growth on Monday amid optimism that the trip of President Bola Tinubu to Qatar over the weekend will yield positive results. At the Nigeria-Qatar Business and Investment Forum in Doha, Mr Tinubu assured Qatari investors that they would not face any bottleneck while attempting to repatriate their funds. This assurance was welcomed by stock investors, who saw light at the end of the tunnel for the nation’s economy, which is currently suffering because of the shortage in the supply of foreign exchange (FX) into the market. Since