Abbey Mortgage increases loans by 28%, deposits increase
Abbey Mortgage Bank customer deposits reached N21.2 billion in 2021, an increase of 45.4% from the previous year.
The leading mortgage bank also increased its loans and advances by 28% to N6.2 billion in the year under review.
The bank announced this at its 30th annual general meeting where it presented its financial results for the year ended December 31, 2021.
Managing Director/CEO Mobolaji Adewumi said that despite the challenges, the bank had proven to be a resilient institution, having existed for 30 years.
He said Abbey Mortgage Bank was committed to the growth process, noting that what helped the bank’s growth was “we had absolute commitment to our vision and our transformation agenda.”
Abbey Mortgage Bank Chairman Mazi Emmanuel Okorafor said the bank has made measurable progress from 2020.
“Our loans and advances increased by 28% to 6.2 billion naira from 4.7 billion naira in 2020, while deposits from our customers increased by 45.4% to 21.2 billion naira compared to N14.6 billion in 2020, driven by growth in the institutional sector and wholesale business segments.
According to the bank’s audited financial statements, the gross profit growth margin stood at N3.68 billion, translating to a growth of 142% from the N1.52 billion recorded in 2020. .
Its operating profit also increased by 104%, resulting in a pre-tax profit of N661 million at the end of the year, compared to a loss of N4.29 billion in 2020, thus registering a positive PBT. in more than six years.
Shareholders also praised the bank’s efforts over the years to increase profitability.
A non-executive director of Abbey Mortgage Bank, Air Vice Marshal Abiodun Olufemi Soewu, highlighted the success achieved by the bank, saying the numbers reflected significant growth in a year.
“If you look at where we come from, a loss-to-profit position is a lot of growth and success. That’s important. The industry is very conservative; people like to borrow money but are pretty reluctant to reimburse it. This is a major challenge for the industry.
Executive Director, Treasury and Business Growth, Oladipupo Adeoye, said the bank had gone from strength to strength despite the complex nature of mortgage banking in the country.
“It is important to note that there is a new trajectory. If you know the industry, you’ll know it’s a tough space to manage and we’ve seen a lot of people come in and out, but we’re still going strong.