Abbey Mortgage Bank, a prominent mortgage institution in Nigeria, has maintained its BBB- rating, positioning itself for expanded business prospects and improved profitability.
In line with assessments from renowned credit rating agency Augusto & Co., the rating underscores Abbey Mortgage Bank’s robust capitalization, satisfactory liquidity profile, skilled management team, and conservative leverage.
Despite the challenging economic climate characterized by weakened purchasing power, soaring inflation, and its consequent impact on households and businesses, the bank’s high non-performing loan (NPL) ratio, affecting asset quality and exposures to unrated counterparties, hindered the attainment of a higher rating.
Expressing his thoughts on the rating, Mobolaji Adewumi, the Managing Director of the bank, stated, “This rating is a testament to the collective effort and dedication of our team, reflecting our steadfast commitment to prudent financial practices, effective risk management, and strategic decision-making.” He further added, “We attribute these accomplishments to the unwavering trust and support of our esteemed customers and shareholders and sincerely value their confidence. As we progress, we remain optimistic in maintaining the highest standards of ethical conduct and regulatory compliance, while delivering exceptional services and innovative banking solutions to our clientele.”
Amidst the economic trials, Abbey Mortgage Bank has sustained its impressive profitable trajectory, achieving record revenue in the third quarter of this year, with a pre-tax profit of N776mn, marking an increase from its 2022 position of N771mn.
Supported by the new rating, improved profitability and share pricing, and a reduction in its share premium, Abbey is poised to conclude the year on a positive trajectory.
The bank remains committed to leading industry trends, adapting to evolving customer requirements, and embracing digital advancements to enhance operational efficiency and customer experiences.