Abbey Bank Earns Stable Outlook Ahead of Commercial Banking Launch
Agusto & Co. has affirmed Abbey Bank Plc’s short-term credit rating at “A3” and assigned the Bank a Stable Outlook, citing its liquidity position, stronger balance sheet and improving financial profile.
The assessment reflects Abbey Bank’s ability to meet its short-term financial obligations. Agusto & Co. said the Bank’s strengthened financial position, expanding franchise and increasingly diversified earnings are expected to support its credit profile.
The rating affirmation comes as Abbey Bank prepares to transition from a national mortgage bank to a regional commercial bank. The Central Bank of Nigeria approved the transition in June 2026, with commercial banking operations scheduled to begin in November 2026.
The Bank plans to expand its services across the South-West, South-South and North-West regions, as well as the Federal Capital Territory. The transition is intended to broaden its customer base, deepen its market presence and diversify revenue.
Liquidity was a key factor in the assessment. As of December 31, 2025, Abbey Bank reported total assets of N166 billion, including N148 billion in liquid assets—89% of total assets. Its liquid assets-to-deposits ratio was 185.3%, compared with a regulatory minimum of 20%. The Bank also had an undrawn US$20 million reverse repo line as of June 30, 2026, providing an additional liquidity buffer.
Asset quality also improved, with the non-performing loan ratio falling from 7.7% in 2024 to 7.2% at the end of 2025, and to 4.1% as of June 30, 2026. The Bank attributed the decline to continued recoveries and prudent loan origination.
Abbey Bank’s capital position was bolstered by a N64.5 billion equity raise, which received regulatory approval in August 2026. The proceeds are expected to strengthen the Bank’s capital base and support its move into commercial banking.
The rating assessment also noted improved profitability. Profit before tax reached N3.1 billion in 2025, up from N2.1 billion in 2024. Abbey Bank plans to expand into areas including construction lending, fixed-income trading, foreign currency transactions and trade finance as it works to diversify its earnings.
Commenting on the rating affirmation, the Managing Director/Chief Executive Officer of Abbey Bank Plc, Mr. Mobolaji Adewumi, said: “The affirmation of our ratings by Agusto & Co., particularly our A3 short-term rating, is a strong endorsement of Abbey Bank’s financial resilience, liquidity strength and strategic direction. It reflects the progress we have made in strengthening our balance sheet and preparing for our transition to commercial banking. As we embark on this new phase, our focus remains on building a stronger, more diversified and customer-centric bank, while maintaining prudent risk management and sound financial discipline. We are confident that our transformation will create greater value for our customers, shareholders and other stakeholders.”
