Susan Abayomi
Abbey Bank Plc has secured an affirmation of its short-term credit rating of A3 from Agusto & Co., alongside a long-term rating of Bbb-, reflecting improvements in its capital position, liquidity and overall financial strength.
The rating agency also assigned a Stable Outlook to the bank, citing expectations that its strengthened financial position, expanding business operations and growing earnings diversification will support its credit profile.
The affirmation comes as Abbey Bank prepares to transition from a national mortgage bank to a regional commercial bank, following approval from the Central Bank of Nigeria (CBN) in June 2026. The bank plans to commence commercial banking operations in November 2026, with a focus on expanding its services across the South-West, South-South and North-West regions, as well as the Federal Capital Territory, Abuja.
The transition is expected to broaden the bank’s customer base, deepen its market presence and create opportunities for diversified revenue generation.
A key factor supporting the rating affirmation is Abbey Bank’s strong liquidity position. As of December 31, 2025, the bank reported total assets of N166 billion, with liquid assets amounting to N148 billion, representing 89 per cent of its total assets.
Its liquid assets-to-deposits ratio stood at 185.3 per cent, significantly above the regulatory minimum of 20 per cent. The bank also maintained an undrawn US$20 million reverse repurchase agreement (repo) line as of June 30, 2026, providing an additional buffer to support its liquidity needs.
The bank’s asset quality also improved during the period under review, with its non-performing loan (NPL) ratio declining from 7.7 per cent in 2024 to 7.2 per cent at the end of 2025, before dropping further to 4.1 per cent as of June 30, 2026.
The improvement was attributed to continued loan recoveries and prudent lending practices.
Abbey Bank’s capital position received a further boost following its successful N64.5 billion equity raise, for which regulatory approval was received in August 2026. The proceeds are expected to strengthen its capital base and support its planned expansion into commercial banking.
The rating assessment also recognised the bank’s improved profitability, with profit before tax rising to N3.1 billion in 2025 from N2.1 billion in the previous year.
As part of its growth strategy, Abbey Bank plans to expand into construction lending, fixed-income trading, foreign currency transactions and trade finance. These business lines are expected to diversify its earnings sources and support its long-term growth ambitions.
Commenting on the rating affirmation, the Managing Director and Chief Executive Officer of Abbey Bank Plc, Mr. Mobolaji Adewumi, described the recognition as an endorsement of the bank’s financial resilience, liquidity strength and strategic direction.
“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,” Adewumi said.
He added that the ratings reflected the progress made in strengthening the bank’s balance sheet and preparing for its transition to commercial banking.
According to him, the bank remains focused on building a stronger, more diversified and customer-centric institution while maintaining prudent risk management and sound financial discipline.
Adewumi expressed confidence that the transformation would create greater value for customers, shareholders and other stakeholders as Abbey Bank enters a new phase of growth.
