Abbey Mortgage shareholders approve N164.5 billion raise amid regional bank transition
Shareholders of Abbey Mortgage Bank Plc have approved plans to raise up to N164.5 billion in fresh capital as the lender accelerates efforts to transform into a regional commercial bank.
Shareholders of Abbey Mortgage Bank Plc have approved plans to raise up to N164.5 billion in fresh capital as the lender accelerates efforts to transform into a regional commercial bank.
The approvals were granted at the bank’s Annual General Meeting (AGM) held on Monday, May 25, 2026, where shareholders overwhelmingly backed a N64.5 billion private placement and authorised the board to raise an additional N100 billion through various equity and debt instruments, subject to regulatory approvals.
Speaking at the meeting, the Chairman of the Board, Mr. Samuel Oni, said the capital raise is a critical component of the bank’s strategy to secure a regional commercial banking licence and position the institution for its next phase of growth.
According to him, the board and management are aggressively working towards securing the approvals required for its conversion from a mortgage bank to a regional commercial bank, a move he described as a key strategic priority.
The chairman said they expect significant progress before the next annual general meeting, expressing confidence that Abbey would be operating as a regional commercial bank by then.
Responding to shareholder questions, Oni said the bank is accelerating efforts to complete its ongoing capital raise and regulatory processes needed for the conversion.
On the planned capital raise, the chairman noted that documentation for the proposed private placement is nearing completion and only awaits final regulatory approvals.
The chairman also defended the bank’s dividend policy, explaining that management is balancing shareholder rewards with the need to preserve capital ahead of the bank’s transition into commercial banking.
The comments suggest the bank is prioritising capital retention and balance-sheet strengthening as it prepares for a more capital-intensive commercial banking model.
Also speaking at the AGM, the Managing Director/Chief Executive Officer, Mr. Mobolaji Adewumi, thanked shareholders for their continued support and reiterated management’s commitment to accelerating the bank’s transformation programme.
According to him, the proposed capital raise will help strengthen working capital, support regulatory requirements, and provide the resources needed to complete the bank’s conversion plans.
On dividends, Adewumi said the board remains committed to rewarding shareholders while simultaneously building sufficient buffers to absorb future risks.
The MD noted that the bank doubled its dividend payout this year because of improved financial performance but stressed that future growth opportunities require disciplined capital management.
He also explained that recent increases in staff numbers were driven by strategic recruitment ahead of the planned conversion to commercial banking, adding that management has maintained cost discipline despite hiring specialised talent.
Shareholders overwhelmingly approved all resolutions presented at the AGM, including measures designed to strengthen the bank’s capital base.
Key resolutions approved include:
The resolutions received near-unanimous support from shareholders representing more than 81% of the bank’s issued share capital.
Abbey Mortgage Bank delivered one of its strongest financial performances in recent years in 2025, providing a solid backdrop for its commercial banking ambitions.
The growth momentum has continued into 2026. In its first-quarter (Q1,2026) results, Abbey Mortgage Bank reported a pre-tax profit of N750.3 million, up 108.8% year-on-year, while profit after tax rose 110% to N715 million. Earnings per share increased to 28.18 kobo, reflecting continued improvement in profitability.
Abbey Mortgage Bank’s planned transition to a regional commercial bank comes amid the just-concluded recapitalisation exercise across Nigeria’s banking industry.
For shareholders, the key milestones to watch in the coming months will be regulatory approval for the private placement, progress on the commercial banking licence conversion and deployment of the fresh capital into growth opportunities.
