Abbey Bank Plc profit after tax increased by 55.9 percent to N2.26 billion in the nine months ended September 2026, as gross earnings surged 120 percent and customer deposits more than tripled following a major expansion in its balance sheet.
The bank’s unaudited financial statements showed that profit before tax rose to N3.23 billion from N1.52 billion in the corresponding period of 2025, while profit before tax more than doubled to N3.23 billion.
Gross earnings climbed to N30.15 billion from N13.69 billion, reflecting a sharp increase in interest income as the lender prepares to expand beyond its traditional mortgage banking business into commercial banking.
Net interest income more than doubled to N6.56 billion from N3.10 billion, supported by interest income of N28.83 billion, up from N13.09 billion a year earlier.
However, the growth in interest income came alongside a substantial increase in funding costs. Interest expenses rose to N22.28 billion from N9.99 billion, highlighting the pressure of funding the bank’s expanding balance sheet.
Total operating income increased to N7.88 billion from N3.70 billion, while operating expenses rose to N4.65 billion from N2.18 billion. Other operating expenses accounted for N2.96 billion of the total, compared with N1.33 billion in the prior-year period.
The earnings growth comes as Abbey Bank advances its transition into a regional commercial bank. The lender disclosed in its financial statements that it received final approval from the Central Bank of Nigeria on June 5, 2026, to convert from a mortgage bank to a regional commercial bank, with commercial banking operations expected to commence in the fourth quarter of 2026.
The conversion is expected to broaden its offerings to retail, commercial and institutional customers, according to the bank’s filing.
Customer deposits surged 231.3 percent to N263.81 billion as of September 2026, from N79.63 billion at the end of December 2025, making deposit growth a major feature of the bank’s balance-sheet expansion.
Total assets rose 126.6 percent to N375.73 billion from N165.83 billion over the same period. However, customer loans and advances increased at a slower pace of 14 percent to N11.08 billion from N9.72 billion.
The figures show that much of the bank’s asset base was held in balances with other financial institutions and investment securities. Balances with banks and other financial institutions reached N214.99 billion, while investments in securities measured at amortised cost stood at N136.19 billion.
Abbey Bank’s equity also rose sharply to N73.76 billion from N10.79 billion at the end of 2025, following an additional capital issue of N61.93 billion during the period.
The capital increase strengthens the bank’s financial base as it prepares to enter commercial banking, although sustaining earnings growth will depend on how effectively it deploys its expanded funding into profitable assets while managing operating and interest costs.
The current share price of Abbey Bank stood at N6.80 per share at the close of trading on Wednesday on the Nigerian Stock Exchange (NGX).
Abbey began the year with a share price of N6.40 and has since gained 6.25 percent on that price valuation, ranking it 79th on the NGX in terms of year-to-date performance.
Chinwe Michael is a Nigerian business journalist and media professional with over 4 years of experience covering companies, financial markets, banking, fintech, economic policy, financial inclusion, and corporate affairs. She currently leads the Companies & Markets desk at BusinessDay, where she drives coverage of Nigeria’s corporate and capital markets, translates complex financial data into accessible stories, and mentors younger journalists. Prior to that, she was the head of the financial inclusion/fintech desk. With a background in banking and finance and extensive experience in media and communications, Michael has developed expertise in financial journalism, economic analysis, investigative reporting and market intelligence. Her work examines how monetary policy, corporate performance, capital flows, technology, and regulatory decisions affect businesses, investors, and households. She was selected from about 3,000 applicants as one of 20 journalists for Cohort 4 of the MTN Media Innovation Programme, gaining exposure to new approaches to journalism, technology, and media innovation. Her international journalism experience and engagement with professionals across Russia, Dubai, Saudi Arabia, and others in different sectors have further broadened her understanding of global communication and development.
