NEWS AGENCY OF NIGERIA Business,Economy/Business Abbey Mortgage total assets hit N54.3bn – MD

Abbey Mortgage total assets hit N54.3bn – MD



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Photo: Officials of NGX and Abbey Mortgage Bank at the mortgage bank’s facts behind the figure presentation to the NGX on Thursday in Lagos

 

By Rukayat Adeyemi

Abbey Mortgage Bank Plc said that its total assets stood at N54.3 billion, with a market capitalisation of N27 billion, an increase from the N22 billion posted as at December 2022 financial year.

Its Group Managing Director/CEO, Mr Mobolaji Adewunmi, presented these figures at the Physical Facts Behind the Figures Presentation by Abbey Mortgage Bank at the Nigerian Exchange Ltd. (NGX) in Lagos.

Adewunmi also said the bank reported a 33.5 per cent increase in deposits, amounting to N39.906 million in the 2023 financial year.

He also said that the bank’s total liability, during the year under review, stood at N45.85 billion and with a release of 602 million shares.

Adewunmi attributed the accelerated growth in performance to capital injection by strategic investors, navigating a challenging regulatory environment.

Adewunmi also highlighted the impact of foreign exchange rate fluctuations on building material and housing prices, as well as the high ratio of non-performing loans (NPL) in mortgage banks.

“In 2020, our NPL ratio was about 75 per cent, and across most of the mortgage banks. There is very much high NPLs, while the regulatory minimum for mortgage banks is actually 20 per cent.

“When you start seeing figures like 25 to 30 per cent, it becomes worrisome.

“In the last three years, we have worked to ensure that there is a crash in the NPL and we are already on eight per cent, which is far below the benchmark,”he said.

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He noted that despite these challenges, the company remained committed to facilitating homeownership and reducing the housing deficit in Nigeria.

Adewunmi mentioned the company’s efforts to meet the ongoing recapitalisation requirements set by the Central Bank of Nigeria (CBN), demonstrating its commitment to remaining a robust player in the industry.

Mr Jude Chiemeka, the Acting CEO of NGX, commended Abbey Mortgage for choosing to present its financial performance and strategic developments.

Chiemeka emphasised on the importance of ongoing engagement with investors and the capital market ecosystem.

He explained that Abbey Mortgage, as one of the seven nationally licensed Primary Mortgage Banks (PMBs) in Nigeria, would continue to play a prominent role within the national financial landscape.

The acting NGX boss said that the company, which operates in the mortgage and lending sector of the Nigerian economy, had an initial authorised share capital of N5 billion.

According to him, the firm has since grown its shareholder funds to over N7 billion, to position it as one of Nigeria’s most capitalised mortgage banks.

Chiemeka commended the mortgage bank for maintaining its commitment to adopting the best standards, processes, and practices.

He said this decision had enabled the firm to deliver innovative products and exceptional services, while striving for sustainable leadership and financial success.

He charged Abbey Mortgage to continually strive for sustainability, by adhering to higher standards of corporate governance, deeper social impact, higher regulatory compliance, and greater returns for shareholders.

Chiemeka noted the NGX remained committed to assisting issuers derive great value from their interactions with the market.

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He said:”By positioning ourselves as the African Exchange of choice, we will continue to adopt rules aimed at improving the corporate governance of our listed firms.

“NGX will also offer products and services that are tailored to the needs of investors in a fair and orderly market”

Edited by AbdulFatai Beki/Olawunmi Ashafa

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