Abbey Mortgage Bank Reports N1.2 Billion Pre-Tax Profit for 2024, a 29.18% Increase

Abbey Mortgage Bank Plc has announced a pre-tax profit of N1.2 billion for the financial year ending December 31, 2024. This marks a 29.18% increase compared to N951.3 million recorded in the previous year, driven by a surge in interest income.

Strong Growth in Interest Income

The bank’s interest income for 2024 rose significantly to N11.9 billion, representing a 65.96% growth from N7.2 billion recorded in 2023.

Breakdown of Interest Income Contributions:

• Cash and short-term funds: N7.3 billion

• Loans and advances: N2.5 billion

• Investment securities at amortized cost: N1.9 billion

However, interest expenses also increased by 84.86%, reaching N8.5 billion, mainly due to customer-related costs. Despite this, the net interest income grew by 31.96% to N3.3 billion, compared to N2.5 billion in 2023.

Key Financial Highlights (2024 vs. 2023)

Financial Metric	2024	2023	YoY Change (%)
Interest Income	N11.9 billion	N7.2 billion	+65.96%
Interest Expense	N8.5 billion	N4.6 billion	+84.86%
Net Interest Income	N3.3 billion	N2.5 billion	+31.96%
Fees & Commission Income	N207.6 million	N395 million	-47.44%
Other Income	N272 million	N217.5 million	+25.03%
Net Impairment Charge	N84.2 million	N108.4 million	-177.62%
Total Operating Income	N3.8 billion	N3.1 billion	+21.64%
Personnel Expenses	N955 million	N775 million	+23.29%
Other Operating Expenses	N2.5 billion	N2.53 billion	-1.11%
Pre-tax Profit	N1.2 billion	N951.3 million	+29.18%
Post-tax Profit	N1 billion	N815.6 million	+22.60%
Total Assets	N84.2 billion	N57.5 billion	+46.42%
Retained Earnings	N1.1 billion	N623.5 million	+80.87%

Decline in Fees and Commission Income

The bank recorded a significant drop in fees and commission income, which fell by 47.44% to N207.6 million, compared to N395 million in 2023.

Breakdown of Fees and Commission Income:

• Advisory fees: N156 million

• Mortgage fees: N51.6 million

However, other income saw a 25.03% growth, reaching N272 million, compared to N217.5 million in 2023.

Balance Sheet Analysis: Strong Asset Growth

Abbey Mortgage Bank’s total assets surged by 46.42%, reaching N84.2 billion, compared to N57.5 billion in the previous year.

Key Contributors to Total Assets:

• Securities at amortized cost: N53.6 billion

• Fixed deposit placements: The largest contributor to financial investments

The bank’s total equity increased to N9.2 billion, up from N8.5 billion.

Breakdown of Shareholder’s Equity:

• Share capital: N5 billion

• Retained earnings: Increased to N1.1 billion (from N623.5 million in 2023)

• Statutory reserves: Grew to N686.3 million (from N472.6 million)

Conclusion

Abbey Mortgage Bank Plc demonstrated strong financial growth in 2024, with significant increases in interest income, total assets, and profitability. While fees and commission income declined, the bank compensated with strong other income growth and effective asset management. With its robust financial position, Abbey Mortgage Bank is well-placed to continue its expansion and investment in Nigeria’s mortgage sector.