Abbey Bank targets wider market as CBN approves commercial banking licence

Abbey Bank Plc, formerly Abbey Mortgage Bank Plc, is preparing to expand its operations and serve a broader customer base following approval by the Central Bank of Nigeria (CBN) to transition into a regional commercial bank.

The approval marks a significant milestone in the financial institution’s history, ending more than three decades of operating experience centred on mortgage financing, real estate development and customer-focused financial services, as it prepares to commence commercial banking operations in the fourth quarter of 2026.

The bank said the transition would enable it to broaden its financial services, deepen relationships with existing customers and explore opportunities across retail, business and corporate banking.

As part of its preparations, Abbey Bank is strengthening its institutional capabilities, upgrading its digital infrastructure, refreshing its brand identity and enhancing its operational processes to support the planned expansion.

The transition represents a strategic shift from its traditional mortgage banking focus towards a broader commercial banking model, with the bank seeking to improve access to financial services for individuals, families, businesses and communities.

The Managing Director and Chief Executive Officer of Abbey Bank Plc, Mr Mobolaji Adewumi, described 2026 as a defining year for the institution, noting that the regulatory approval reflected the work invested in developing the bank and the confidence of its stakeholders.

“The year 2026 represents a defining moment in the history of Abbey. Our approval to transition to commercial banking is a testament to the work invested in building this institution and the confidence placed in us by our regulators, shareholders, customers and employees,” Adewumi said.

He explained that the bank intended to build on its experience in mortgage banking and real estate finance while developing the capacity to meet a wider range of financial needs.

According to him, the bank’s ambition is to make banking more accessible, responsive and relevant to the aspirations of individuals, families and businesses.

Adewumi added that the institution’s immediate priority was to ensure a smooth transition to commercial banking while maintaining the trust and service standards associated with its operations over the years.

“Our next chapter is about creating more possibilities for the people and businesses we serve,” he said.

The planned expansion is supported by the bank’s recent financial performance, with Abbey recording a significant increase in profitability in 2025.

Its profit before tax rose to N3.12 billion in 2025 from N1.22 billion in 2024, representing an increase of approximately 155.7 per cent.

The improvement in earnings provides a stronger financial base as the institution prepares to take on the operational demands and regulatory responsibilities associated with commercial banking.

However, the bank’s ability to sustain its growth will depend on its capacity to strengthen its capital position, manage risks effectively and maintain profitability as it expands into a more competitive segment of the financial services industry.

Digital banking is another major component of Abbey’s strategy, with the institution seeking to make its services more convenient and accessible to customers.

As part of its preparations for the transition, the bank is integrating technology, improving internal processes and supporting the migration of customers to an enhanced core banking platform.

The technology upgrade is expected to support its expanded operations and provide the infrastructure required to manage a broader range of banking products and services.

The transition also places greater emphasis on operational efficiency, sound corporate governance and regulatory compliance as the bank prepares to serve customers with different financial requirements.

Adewumi reiterated that Abbey would prioritise continuity of service throughout the transition, stressing that the bank remained committed to maintaining customer confidence while strengthening its capabilities.

The institution also said it would continue to focus on prudent risk management, responsible financial innovation and sustainable growth as it expands its activities.

The move into regional commercial banking comes with opportunities to diversify its revenue streams beyond its traditional mortgage and real estate financing activities. It could also enable the bank to develop a wider range of services for individuals and businesses, subject to the scope of its approved operations.

For Abbey Bank, the next phase will involve translating regulatory approval and its investment in technology and institutional capacity into improved customer experience, stronger business performance and sustainable growth.

With commercial banking operations expected to commence in the fourth quarter of 2026, the bank is positioning itself for a broader role in Nigeria’s financial services sector while seeking to preserve the experience and customer relationships built over more than three decades.

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