Abbey Mortgage Bank: A rising star in Nigeria’s financial sector 

The mortgage bank has emerged as the best-performing mortgage stock on the Nigerian Exchange (NGX), delivering a 20% YtD gain as of March 20, 2025, building on a 35% return in 2024.

Abbey has now rallied 291% in five years, climbing from N0.92 in 2019 to N3.60.

With a 1.11% dividend yield (N0.04 per share), Abbey’s total return stands at 21.11% YtD.

Earnings per share surged 33% to N0.12, fueling expectations for a higher dividend payout for the 2024 financial year.

Abbey’s latest financials highlight an evolving approach to income generation. Gross earnings surged by 58% to N12.4 billion, driven largely by a 65% rise in interest income to N11.91 billion.

Mortgage financing, in particular, shifted from N12.59 billion in 2023 to N8.53 billion in 2024, a reflection of Abbey’s recalibrated strategy to balance risk and returns.

Abbey’s increased focus on financial investments has played a key role in its revenue expansion. Pre-tax profit grew by 34.88% to N1.28 billion, showcasing the bank’s ability to sustain profitability even in a dynamic financial environment.

While profit margins adjusted slightly to 9.87%, Abbey’s strengthened liquidity position provides a solid foundation for future growth.

Mortgage lending remains a long-term, capital-intensive business, and the bank’s strategic asset reallocation ensures financial agility as it navigates market dynamics.

Abbey’s evolving portfolio mix is a calculated response to current market conditions, particularly in light of increased default risks in the mortgage sector.

By strategically investing in low-risk financial instruments, the bank is preserving liquidity while positioning itself for long-term mortgage sector expansion.

Additionally, Abbey’s Approval-in-Principle (AIP) for a commercial banking license signals a broader transformation.

As part of this transition, the bank is restructuring its balance sheet to support a more diversified financial services model, ultimately enhancing value for stakeholders.