Abbey Mortgage Bank wipes out bad loans as it pivots to commercial banking

Abbey Mortgage Bank Plc says it has reduced its non-performing loan ratio from about 80% to zero following a debt recovery exercise, as the lender transitions into regional commercial banking.

Now trading as Abbey Bank Plc, the company said it would adopt a digital-first approach built on technology integration, stronger operational processes and the migration of customers to an enhanced core banking platform.

Managing Director and Chief Executive Officer Mobolaji Adewumi, who disclosed the strategy, said digital banking remains a central pillar and would be combined with a physical presence in eight locations. He said the bank had recruited professionals across treasury, trade finance, corporate banking, retail banking, electronic banking and risk management.

Adewumi said the decision to move beyond mortgage banking followed an assessment of financing opportunities across the housing value chain, including property developers, building material suppliers, importers and other related businesses. The new licence, he said, would also help address the high cost of funds that has constrained mortgage lending by broadening the bank's funding options, including through retail deposits.

Executive Director of Finance, Risk and Operations John Okonkwo said an improved risk management framework had been central to keeping the loan book healthy, and said the bank had introduced an investor relations framework so minority shareholders can raise concerns. The board includes three independent non-executive directors.

The shift follows regulatory approval from the Central Bank of Nigeria in June 2026 for the mortgage lender to convert into a commercial bank. At its annual general meeting on 26 May 2026, shareholders approved a N164.5 billion private placement and authorised the board to raise a further N100 billion through equity and debt instruments, subject to regulatory approvals.