Abbey Bank Plc has retained its A3 short-term credit rating from Agusto & Co., alongside a BBB- rating and Stable Outlook, reflecting its improved capitalisation and strong liquidity position as disclosed in the latest rating affirmation by Agusto & Co. obtained by Nairametrics on Thursday, October 29, 2026.

The rating affirmation by Agusto & Co. stated that the bank’s strengthened financial position, expanding franchise and growing earnings diversification are expected to support its credit profile and capacity to meet short-term obligations.

The affirmation comes as Abbey Bank, formerly Abbey Mortgage Bank Plc, prepares to transition from a national mortgage bank into a regional commercial bank following approval from the Central Bank of Nigeria (CBN) in June 2026.

Abbey Bank liquidity exceeds requirements

Abbey Bank maintained a strong liquidity position, with liquid assets of N148 billion representing approximately 89% of its N166 billion total assets as of December 31, 2025.

  • Its liquid assets-to-deposits ratio stood at 185.3%, substantially above the regulatory minimum of 20%, providing a significant buffer against short-term obligations.
  • The bank retained an undrawn $20 million reverse repurchase agreement facility as of June 30, 2026, providing an additional liquidity buffer.
  • Its non-performing loan ratio declined to 4.1% in June 2026 from 7.2% at the end of 2025 and 7.7% in 2024.
  • The improvement in asset quality was supported by continued loan recoveries and prudent loan origination.
  • Agusto & Co. affirmed the bank’s A3 short-term rating and BBB- rating, with a Stable Outlook.
  • The latest rating extends the improvement previously reported by Nairametrics in November 2025, when Abbey Bank received an A3 rating from Agusto & Co. and GCR Ratings.

At the time, its non-performing loan ratio had declined to 8.1% as of July 2025 from 13.5% in December 2023, while its core capital ratio stood at 27.8%.

The latest decline in non-performing loans, alongside the bank’s substantial liquidity buffers, supports its strengthened credit profile.

N64.5 billion capital raise supports expansion

Abbey Bank’s N64.5 billion equity raise is expected to strengthen its capital base and support its transition into regional commercial banking.

The bank received regulatory approval for the capital raise in August 2026, following shareholders’ approval of a private placement and additional fundraising plans.

  • The private placement involves 26.56 billion ordinary shares priced at N2.43 each, according to Nairametrics’ earlier report on the bank’s annual general meeting notice.
  • The transaction would increase issued share capital from approximately N5.08 billion to N18.36 billion, nearly tripling the existing amount.
  • Shareholders also authorised the board to raise an additional N100 billion through equity and debt instruments.
  • Abbey Bank recorded a pre-tax profit of N3.12 billion in 2025, while first-quarter 2026 pre-tax profit increased by 108.79% to N750.28 million.
  • The additional capital is intended to support the bank’s expansion beyond mortgage financing into broader commercial banking services.

The bank expects its earnings base to become more diversified as it develops activities in construction lending, fixed-income trading, foreign currency transactions and trade finance.

These developments form part of its strategy to strengthen profitability while maintaining prudent risk management and financial discipline.

Abbey Bank targets November launch

Abbey Bank plans to commence regional commercial banking operations in November 2026, following the CBN’s approval of its licence transition in June.

The planned expansion will cover the South-West, South-South and North-West regions, alongside the Federal Capital Territory, broadening the bank’s operations beyond its traditional mortgage banking activities.

  • The new commercial banking licence will allow Abbey Bank to offer a wider range of banking services beyond mortgage financing.
  • Its planned business expansion includes construction lending, trade finance, fixed-income trading and foreign currency transactions.
  • Managing Director and Chief Executive Officer Mobolaji Adewumi described the rating affirmation as an endorsement of the bank’s financial resilience, liquidity strength and strategic direction.
  • Adewumi said “management remains focused on building a stronger, more diversified and customer-centric bank while maintaining prudent risk management and sound financial discipline.”

The transition represents a significant development for Abbey Bank as it seeks to expand its franchise and strengthen its earnings capacity. Its strengthened capital position and improved asset quality provide a foundation for the planned commercial banking operations.

However, the next important tests will be the November launch and how effectively the bank deploys its additional capital into loan growth and new revenue streams.