Abbey Mortgage Bank Plc, one of Nigeria’s oldest primary mortgage institutions, has received approval from the Central Bank of Nigeria to transition into a commercial bank.

The bank, however, is expected to begin full commercial banking operations in the fourth quarter of 2026.

The approval represents a significant strategic milestone for the institution, enabling it to expand its services beyond mortgage lending into a full suite of commercial banking offerings.

In a statement, Abbey Mortgage Bank described the regulatory approval as the start of a “transformative era” in its corporate evolution.

The bank added that preparations for the transition are already in progress, including technology upgrades, infrastructure expansion, and corporate rebranding ahead of the planned launch.

Abbey also confirmed that it will maintain its core strength in real estate financing while broadening its portfolio to include enhanced digital banking services, SME-focused lending, trade finance solutions, and wealth management products.

At its Annual General Meeting (AGM) held on May 26, 2026, shareholders of Abbey Mortgage Bank approved a N164.5 billion private placement and also empowered the board to raise an additional N100 billion through a mix of equity and debt instruments, subject to regulatory approval.

Speaking at the meeting, Chairman Mr. Samuel Oni said the capital raise is central to the bank’s strategy to secure a regional commercial banking licence and support its transition into the next phase of growth.

“By the time we are meeting next year, by the grace of God, we will be talking about Abbey Plc as a commercial bank with regional authorisation,” he said.

Abbey Mortgage Bank has reported one of its strongest financial performances in recent years, reinforcing its transition plans into commercial banking.

According to its audited 2025 financial statements, the bank posted a pre-tax profit of N3.12 billion, representing a 154.3 per cent increase from N1.22 billion recorded in 2024.

Profit after tax rose to N2.16 billion, while earnings per share improved to 21 kobo, up from 11 kobo in the previous year.

Interest income also climbed to N18.97 billion, supported by stronger returns from cash and short-term placements, investment securities, and loan portfolios.