Abbey Bank Plc, formerly known as Abbey Mortgage Bank Plc, has said it would adopt a digital-first approach as it transitions into regional commercial banking.
To that effect, the bank said it is now advancing technology integration, strengthening operational processes and supporting the migration of customers to an enhanced core banking platform.
The bank’s Managing Director and Chief Executive Officer, Mobolaji Adewumi, who disclosed this, said digital banking remains a central pillar of the bank’s strategy to make financial services more accessible.
According to him, the bank would combine digital banking with its physical presence in eight locations. Adewumi said the bank had recruited professionals across treasury, trade finance, corporate banking, retail banking, electronic banking and risk management to support its new operations.
Abbey Bank raises N64 billion for commercial banking transition
Adewumi said the decision to move beyond mortgage banking followed an assessment of financing opportunities across the housing value chain, including property developers, building material suppliers, importers and other related businesses.
- He explained that the bank’s previous mortgage banking licence limited its ability to finance some of these businesses, prompting it to seek a broader licence to support its expansion.
- Discussions with the Central Bank of Nigeria (CBN) on the transition began in 2023, while approval in principle was received in October 2024.
- The bank subsequently raised N64 billion, exceeding its initial target of N40 billion, with the funds cleared by the CBN. It received its regional commercial banking licence in June 2026.
Adewumi said the new licence would also help address the high cost of funds that has constrained mortgage lending by broadening the bank’s funding options, including through retail deposits.
The Executive Director of Finance, Risk and Operations, John Okonkwo, said the bank’s improved risk management framework had been central to its efforts to maintain a healthy loan portfolio.
He also disclosed that the bank had introduced an investor relations framework to enable minority shareholders to raise concerns and obtain relevant information. The board has three independent non-executive directors, he said.
How Abbey secured commercial banking licence
Earlier in June this year, 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 expected to unlock a major strategic milestone for the company, allowing the bank to expand beyond mortgage financing into comprehensive commercial banking services.
- Before that approval, Abbey’s transition to commercial banking had been in motion for months, supported by strategic decisions and strong financial performance.
At the Annual General Meeting (AGM) held on May 26, 2026, shareholders approved a N164.5 billion private placement and authorised the board to raise an additional N100 billion through various equity and debt instruments, subject to regulatory approvals.