Abbey Mortgage Bank Plc demonstrated robust financial performance in 2024, reporting a 23% surge in profit after tax, reaching N1.07 billion compared to N871.3 million in 2023. This growth was primarily fueled by a significant 66% increase in interest income, which climbed to N11.95 billion from N7.2 billion. This surge in interest income reflects the bank’s success in generating revenue from its lending activities and investments. Although interest expenses also rose considerably, by 85% to N8.56 billion, reflecting the impact of higher funding costs in the prevailing economic environment, the bank’s net interest income still witnessed a healthy increase, reaching N3.4 billion, up from N2.57 billion in the previous year. This indicates the bank’s ability to effectively manage its interest rate spread despite rising funding costs.
Beyond interest income, Abbey Mortgage Bank also registered growth in other income streams. Fees and commission income reached N207.7 million, while other income contributed N272.1 million, resulting in a total operating income of N3.88 billion, a notable improvement from N3.19 billion in 2023. This diversification of income sources demonstrates the bank’s efforts to explore alternative revenue streams and reduce reliance solely on interest income. While operating expenses also saw an increase to N2.56 billion from N2.34 billion, primarily driven by higher personnel costs and depreciation charges, the bank effectively managed these expenses to ensure profitability. The increase in taxation to N160.8 million from N80.1 million, while impacting the overall bottom line, is a reflection of the increased profit generated during the year.
A key highlight of Abbey Mortgage Bank’s 2024 financial performance is the impressive 46% expansion of its total assets, reaching N84.25 billion compared to N57.54 billion in 2023. This significant growth was largely driven by a substantial increase in customer deposits, which climbed to N53.9 billion from N40.05 billion. This influx of deposits reflects growing customer confidence in the bank and provides a strong foundation for future lending activities. However, loans and advances to customers declined to N12.07 billion from N14.14 billion, suggesting a cautious lending approach adopted by the bank in response to prevailing market conditions or risk management strategies.
The bank’s equity base also experienced growth, rising to N9.23 billion from N8.57 billion, bolstered by increased retained earnings and statutory reserves. This strengthening of the equity base enhances the bank’s financial stability and capacity to absorb potential losses. Furthermore, the improvement in earnings per share to 11 kobo from nine kobo indicates a stronger return on investment for shareholders, demonstrating the bank’s commitment to maximizing shareholder value. This performance marks a continuation of the bank’s positive trajectory, as it also reported a 51% increase in profit after tax in the first half of 2024, reaching N508 million compared to N336 million in the same period of 2023.
In summary, Abbey Mortgage Bank’s 2024 financial results showcase a year of strong growth and strategic financial management. The bank effectively capitalized on opportunities to increase interest income and diversify its revenue streams, while also managing expenses and maintaining a cautious lending approach. The significant growth in total assets and customer deposits underscores growing confidence in the bank’s stability and performance. The strengthening of the equity base and the improvement in earnings per share further solidify the bank’s financial position and its commitment to delivering value to its shareholders.
Looking ahead, Abbey Mortgage Bank appears well-positioned for continued growth and success. The bank’s strong financial performance in 2024, coupled with its strategic focus on revenue diversification, expense management, and prudent lending practices, provides a solid foundation for navigating future market challenges and capitalizing on emerging opportunities. The continued growth in customer deposits provides a strong liquidity position, which, combined with a strengthened equity base, enables the bank to pursue strategic initiatives and further enhance shareholder value. While the decline in loans and advances suggests a cautious approach, it also reflects a commitment to risk management, which is crucial for long-term sustainability.
