Abbey Bank keeps A3 rating as it prepares November switch to commercial banking
- Agusto & Co. affirmed Abbey Bank's A3 short-term and BBB- ratings with a Stable Outlook.
- The bank held ₦148 billion in liquid assets, about 89% of its ₦166 billion total assets at end-2025.
- Abbey Bank plans to start regional commercial banking in November across three zones and the FCT.
Abbey Bank Plc has held on to its A3 short-term credit rating from Agusto & Co., which also affirmed its BBB- rating with a Stable Outlook. The agency said the bank's stronger capital, deep liquidity and growing spread of earnings should keep it able to meet short-term obligations.
The affirmation comes as the lender, formerly Abbey Mortgage Bank Plc, prepares to move from a national mortgage bank to a regional commercial bank. The Central Bank of Nigeria (CBN) approved the licence change in June 2026, and the bank plans to start commercial operations in November.
For customers, the shift means Abbey will offer more than mortgages, including construction lending, trade finance, fixed-income trading and foreign currency transactions. It plans to operate in the South-West, South-South and North-West, plus the Federal Capital Territory.
Why the rating matters
Agusto & Co. based the rating on the bank's balance sheet. As of December 31, 2025, Abbey had total assets of ₦166 billion, of which ₦148 billion, about 89%, were liquid assets.
Its liquid assets-to-deposits ratio stood at 185.3%, far above the 20% regulatory minimum. The bank also held an undrawn $20 million reverse repurchase agreement facility as of June 30, 2026, giving it another buffer.
Asset quality improved too. The non-performing loan ratio fell to 4.1% in June 2026 from 7.2% at the end of 2025 and 7.7% in 2024, helped by loan recoveries and tighter lending.
Profit before tax rose to ₦3.1 billion in 2025 from ₦2.1 billion in 2024, according to Leadership, a rise of about 47.6%. Nairametrics reported pre-tax profit of ₦3.12 billion for 2025 and said first-quarter 2026 profit rose 108.79% to ₦750.28 million.
A ₦64.5 billion equity raise, approved by regulators in August 2026, is meant to fund the expansion. The private placement covers 26.56 billion ordinary shares at ₦2.43 each, and shareholders also backed plans to raise up to ₦100 billion more through equity and debt.
Managing Director and Chief Executive Officer Mobolaji Adewumi said the rating was "a strong endorsement of Abbey Bank's financial resilience, liquidity strength and strategic direction." He said management would keep building "a stronger, more diversified and customer-centric bank" with sound risk management.
What happens next
The test is the November launch. How well the bank turns the new capital into loans and fresh income across its new regions will shape its standing with customers and rating agencies.
