Abbey Bank Plc, previously identified as Abbey Mortgage Bank Plc, has stated it would adopt a digital-first strategy as it transitions into regional commercial banking.
To that impact, the financial institution stated it is now advancing expertise integration, strengthening operational processes and supporting the migration of shoppers to an enhanced core banking platform.
The financial institution’s Managing Director and Chief Executive Officer, Mobolaji Adewumi, who disclosed this, stated digital banking stays a central pillar of the financial institution’s strategy to make monetary providers extra accessible.
According to him, the financial institution would mix digital banking with its bodily presence in eight areas. Adewumi stated the financial institution had recruited professionals throughout treasury, commerce finance, company banking, retail banking, digital banking and danger administration to assist its new operations.
Abbey Bank raises N64 billion for commercial banking transition
Adewumi stated the choice to transfer past mortgage banking adopted an evaluation of financing alternatives throughout the housing worth chain, together with property builders, constructing materials suppliers, importers and different associated companies.
- He defined that the financial institution’s earlier mortgage banking licence restricted its capability to finance a few of these companies, prompting it to search a broader licence to assist its growth.
- Discussions with the Central Bank of Nigeria (CBN) on the transition started in 2023, whereas approval in precept was obtained in October 2024.
- The financial institution subsequently raised N64 billion, exceeding its preliminary goal of N40 billion, with the funds cleared by the CBN. It obtained its regional commercial banking licence in June 2026.
Adewumi stated the brand new licence would additionally assist deal with the excessive price of funds that has constrained mortgage lending by broadening the financial institution’s funding choices, together with by way of retail deposits.
The Executive Director of Finance, Risk and Operations, John Okonkwo, stated the financial institution’s improved danger administration framework had been central to its efforts to keep a wholesome mortgage portfolio.
He additionally disclosed that the financial institution had launched an investor relations framework to allow minority shareholders to elevate considerations and acquire related info. The board has three impartial non-executive administrators, he stated.
How Abbey secured commercial banking licence
Earlier in June this 12 months, Nairametrics reported that Abbey Mortgage Bank Plc, had secured regulatory approval from the Central Bank of Nigeria (CBN) to convert into a commercial bank.
- The approval was anticipated to unlock a significant strategic milestone for the corporate, permitting the financial institution to develop past mortgage financing into complete commercial banking providers.
- Before that approval, Abbey’s transition to commercial banking had been in movement for months, supported by strategic choices and robust monetary efficiency.
At the Annual General Meeting (AGM) held on May 26, 2026, shareholders authorised a N164.5 billion non-public placement and authorised the board to elevate an extra N100 billion by way of varied fairness and debt devices, topic to regulatory approvals.
