Abbey Mortgage Bank’s post-tax profit rises by 51%

By Esther Agbo

Abbey Mortgage Bank’s post-tax profit surged by 51per cent to N508 million in the first half of this year, up from N336 million during the same period last year, according to the bank’s unaudited financial statements filed with the Nigeria Exchange Limited on Friday.

The bank also reported a 47 percent increase in pre-tax profit, reaching N560 million compared to N380 million in the same period last year.

This was supported by a 60 percent rise in gross earnings, which climbed to N5.06 billion from N3.16 billion the previous year.

Net operating income grew 37 percent year-on-year to N1.74 billion, up from N1.27 billion in the first half of 2023, driven by a 31 percent rise in net interest income to N1.51 billion from N1.15 billion. Additionally, fees and commission income rose by 82 percent to N125.69 million.

However, loans and advances to customers decreased by 27.82 percent, falling to N10.20 billion from N14.14 billion, while customer deposits increased by 32.37 percent to N53.01 billion.

Total assets rose by 23.36 percent to N70.98 billion from N57.54 billion, reflecting growth in the bank’s investment in securities and other financial instruments. The bank’s total equity also saw a modest increase of 1.19 percent, rising to N8.67 billion from N8.57 billion.

Operating expenses increased by 32.7 percent to N1.18 billion compared to N891 million the previous year, largely due to higher personnel costs and increased depreciation. Personnel expenses alone climbed by 27 percent to N426.1 million.

Earnings per share surged by 74.83 percent to N10.01 from N5.72.

In May, report has it that there was a 15 percent year-over-year increase in Abbey Mortgage Bank’s pre-tax profit to N951 million in 2023, from N827 million the previous year.

However, the CEO, Mobolaji Adewumi attributed the bank’s strong performance to resilience and excellence amidst the nation’s economic challenges.