Abbey Bank Plc has retained its A3 short-term credit rating from Agusto & Co., alongside a BBB- rating and Stable Outlook, reflecting its improved capitalisation and robust liquidity position as disclosed within the newest rating affirmation by Agusto & Co. obtained by Nairametrics on Thursday, October 29, 2026.
The rating affirmation by Agusto & Co. said that the financial institution’s strengthened monetary position, increasing franchise and rising earnings diversification are anticipated to assist its credit profile and capability to fulfill short-term obligations.
The affirmation comes as Abbey Bank, previously Abbey Mortgage Bank Plc, prepares to transition from a nationwide mortgage financial institution right into a regional industrial financial institution following approval from the Central Bank of Nigeria (CBN) in June 2026.
Abbey Bank liquidity exceeds necessities
Abbey Bank maintained a robust liquidity position, with liquid belongings of N148 billion representing roughly 89% of its N166 billion whole belongings as of December 31, 2025.
- Its liquid assets-to-deposits ratio stood at 185.3%, considerably above the regulatory minimal of 20%, offering a big buffer towards short-term obligations.
- The financial institution retained an undrawn $20 million reverse repurchase settlement facility as of June 30, 2026, offering an extra liquidity buffer.
- Its non-performing mortgage ratio declined to 4.1% in June 2026 from 7.2% on the finish of 2025 and 7.7% in 2024.
- The enchancment in asset high quality was supported by continued mortgage recoveries and prudent mortgage origination.
- Agusto & Co. affirmed the financial institution’s A3 short-term rating and BBB- rating, with a Stable Outlook.
- The newest rating extends the development beforehand reported by Nairametrics in November 2025, when Abbey Bank obtained an A3 rating from Agusto & Co. and GCR Ratings.
At the time, its non-performing mortgage ratio had declined to eight.1% as of July 2025 from 13.5% in December 2023, whereas its core capital ratio stood at 27.8%.
The newest decline in non-performing loans, alongside the financial institution’s substantial liquidity buffers, helps its strengthened credit profile.
N64.5 billion capital elevate helps enlargement
Abbey Bank’s N64.5 billion fairness elevate is predicted to strengthen its capital base and assist its transition into regional industrial banking.
The financial institution obtained regulatory approval for the capital elevate in August 2026, following shareholders’ approval of a non-public placement and extra fundraising plans.
- The non-public placement includes 26.56 billion odd shares priced at N2.43 every, in line with Nairametrics’ earlier report on the financial institution’s annual normal assembly discover.
- The transaction would enhance issued share capital from roughly N5.08 billion to N18.36 billion, almost tripling the prevailing quantity.
- Shareholders additionally authorised the board to boost an extra N100 billion by means of fairness and debt devices.
- Abbey Bank recorded a pre-tax revenue of N3.12 billion in 2025, whereas first-quarter 2026 pre-tax revenue elevated by 108.79% to N750.28 million.
- The extra capital is meant to assist the financial institution’s enlargement past mortgage financing into broader industrial banking companies.
The financial institution expects its earnings base to develop into extra diversified as it develops actions in building lending, fixed-income buying and selling, international forex transactions and commerce finance.
These developments kind a part of its technique to strengthen profitability whereas sustaining prudent threat administration and monetary self-discipline.
Abbey Bank targets November launch
Abbey Bank plans to start regional industrial banking operations in November 2026, following the CBN’s approval of its licence transition in June.
The deliberate enlargement will cowl the South-West, South-South and North-West areas, alongside the Federal Capital Territory, broadening the financial institution’s operations past its conventional mortgage banking actions.
- The new industrial banking licence will permit Abbey Bank to supply a wider vary of banking companies past mortgage financing.
- Its deliberate enterprise enlargement contains building lending, commerce finance, fixed-income buying and selling and international forex transactions.
- Managing Director and Chief Executive Officer Mobolaji Adewumi described the rating affirmation as an endorsement of the financial institution’s monetary resilience, liquidity energy and strategic path.
- Adewumi mentioned “management remains focused on building a stronger, more diversified and customer-centric bank while maintaining prudent risk management and sound financial discipline.”
The transition represents a big growth for Abbey Bank as it seeks to increase its franchise and strengthen its earnings capability. Its strengthened capital position and improved asset high quality present a basis for the deliberate industrial banking operations.
However, the following vital checks would be the November launch and how successfully the financial institution deploys its extra capital into mortgage progress and new income streams.
