Abbey Mortgage Bank Rebounds With N622m Profit In 2021

Abbey Mortgage Bank Plc has reported a N622 million profit in 2021, rebounding from a loss of N4.3 billion in the previous year.

The year 2021 was indeed a positive one for the bank as evident by its improved income, asset and general operations in the face of double-digit inflation and after a slowdown in economic activities in the country due to Covid

In 2021, the bank’s total interest income was N3.3 billion which is a 137 per cent increase from the N1.4 billion recorded in 2020 largely driven by mortgages, construction finance, and treasury investments.

Expectedly, the interest expenses jumped during the period recording an N1.7 billion in 2021, a 212 per cent increase from last year’s, leaving the net interest income to circa N1.6 billion.

Consequently, the net operating income hit N2.2 billion in 2021 from a negative of N2.9 billion in the previous year. This owes to the increase in total operating income which rose significantly from N980 million to N2 billion.

The bank’s expenses increased marginally to N1.5 billion in 2021 from N1.3 billion a year before due to increased personnel and other operating expenses. This led to a rise in profit before tax to N661 million.

Total assets by the bank increased to N34 billion in 2021 depicting a 86 per cent rise from N18.5 billion while the bank’s market capitalization stands at N18 billion. Also, the bank last traded at N1.8 per share price as of Friday, 28th May 2022 which is a signal that the performance of the bank is gradually reflected in the trading price of its stock.

The bank also recently announced the appointment of Mobolaji Adewumi with effect from 25th May 2022 to replace the former managing director, Madu Hamman who has been appointed as the new MD of Federal Mortgage Bank Of Nigeria.

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